ITO v. AA226, Modakurichi Primary Agricultural Cooperative Credit Society

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The Tax Publishers2022 TaxPub(DT) 2086 (Mad-HC)

INCOME TAX ACT, 1961

Section 80P

Admittedly, in all these cases, AO passed orders of assessment determining income of respective respondent/Co-operative Society and demanded tax. Challenging said orders of assessment, respondents already filed appeals before appellate authority and they were pending. Therefore, respondents were directed to raise all contentions, including eligibility of their claim under section 80P in appeals pending before appellate authority. The appellate authority was also directed to consider claim of respondents/co-operative societies and pass orders, on merits and in accordance with law and also in the light of decision rendered by the Supreme Court.

Deduction under section 80P - Co-operative society - Applicability of provisions of section 80P(4) -

Respondent being Agricultural Co-operative Credit Society filed its return of income declaring 'nil' income and claimed deduction under section 80P. AO disallowed claim made under section 80P. Hence writ petition was filed. The Judge after having found that issue involved in the writ petition was covered by judgment in Tax Case Appeal Nos. 484 to 487 and 490 of 2016 dt. 2-8-2016 wherein it was held that exemption spelt out in section 80P(4) was applicable to the credit society. However, it was brought to the notice of the Judge that as against the said order passed by the Division Bench of this Court, an appeal; in SLP had been filed before the Supreme Court and it was pending. Having regard to the same, the Judge directed appellant not to give effect to orders of assessment, which were impugned in the writ petitions and to keep them in abeyance and further proceedings should be taken up subject to outcome of the SLP. Hence, Revenue came up with these writ appeals. Held: Admittedly, in all these cases, AO passed orders of assessment determining income of respective respondent/Co-operative Society and demanded tax. Challenging said orders of assessment, respondents already filed appeals before appellate authority and they were pending. Therefore, respondents were directed to raise all contentions, including eligibility of their claim under section 80P in appeals pending before appellate authority. The appellate authority was also directed to consider claim of respondents/co-operative societies and pass orders, on merits and in accordance with law and also in the light of decision rendered by the Supreme Court.

Followed:The Mavilayi Service Cooperative Bank Ltd. & Ors. vs. CIT & Anr, (2021) 123 taxmann.com 161 (SC) : 2021 TaxPub(DT) 0273 SC, Referred : The Citizen Co-operative Society Ltd. vs. Asstt. CIT 2017 TaxPub(DT) 2053(SC), CIT vs. Tiruchengode Agricultural Producers Cooperative Marketing Society Ltd. Tax Case Appeal Nos. 484 to 487 and 490 of 2016, dt. 2.8.2016, Pr. CIT vs. M/s. S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd., Special Leave to Appeal (C) No(s). 17745/2019 : 2020 TaxPub(DT) 0898 (SC)

REFERRED :

FAVOUR : In favour assessee.

A.Y. :

IN THE MADRAS HIGH COURT