| The Tax Publishers2019 TaxPub(DT) 3180 (Bang-Trib) INCOME TAX ACT, 1961
Section 80(P)(2)(c)(ii)
Once revenue had denied deduction under section 80P(2)(d) to assessee, then question arose as to whether assessee was still entitled for deduction of Rs. 50,000 under section 80P(2)(c) or not. Clearly, assessee was carrying on the cooperative activities within the meaning of law but was not a consumer co-operative society, hence, it was entitled to deduction under section 80P(2)(c)(ii).
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Deduction under section 80P(2)(c)(ii) - Allowability - Housing co-operative Society not engaged in any of the activities specified in clause (a) or clause (b) of section 80P(2) -
Assessee, a Housing Cooperative Society, claimed deduction under section 80P(2)(d). AO considering the provision of section 80P(2)(d), disallowed deduction claimed by assessee. However, AO allowed the deduction of Rs. 50,000 under section 80P(2)(c). Aggrieved, assessee filed appeal before the CIT(A) who also denied deduction of Rs. 50,000 given by the AO under section 80P(2)(c), on the ground that activities of assessee were not eligible for deduction under any of the clauses. Held : Once revenue had denied deduction under section 80P(2)(d) to assessee then question arose as to whether assessee was still entitled for deduction of Rs. 50,000 under section 80P(2)(c) or not. Clearly, assessee was carrying on the cooperative activities within the meaning of law but was not a consumer co-operative society, hence, it was entitled to deduction under section 80P(2)(c)(ii).
Followed :Film Nagar Co-operative Housing Society Ltd. 2004 TaxPub(DT) 0207 (Hyd-Trib): (2004) 91 ITD 27 (Hyd-Trib),Maker Tower A&B Co-op. Hsg. Society Ltd. 2008 TaxPub(DT) 0911 (Mum-Trib): (2008) 20 SOT 253 (Mum) and Tamil Nadu Brick & Tile Mfrs. Industrial Service Co-operative Society Ltd. 2004 TaxPub(DT) 0362 (Mad-HC) : (2003) 129 Taxman 343 (Mad)
REFERRED :
FAVOUR : Partly in favour of assessee.
A.Y. : 2009-10, 2013-14 & 2015-16
IN THE ITAT, BENGALURU BENCH
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