The Tax Publishers2021 TaxPub(DT) 0622 (Mad-HC)

INCOME TAX ACT, 1961

Section 80P(2)(a)(i)

Activities of assessee were in the nature of accepting deposits, advancing loans, etc., were confined to its members only and that too in a particular geographical area, accordingly, assessee could not be classified as co-operative bank and was, therefore, eligible for deduction under section 80P(2)(a)(i).

Deduction under section 80P(2)(a)(i) - Allowability - -

Assessee, agricultural credit co-operative society, claimed deduction under section 80P(2)(a)(i). AO disallowed claim of the assessee on the ground that assessee had lent monies to members who were undertaking non-agricultural/ non-farm activities and had received interest on par with commercial banks. Held: Activities of assessee-society were in the nature of accepting deposits, advancing loans, etc., were confined to its members only and that too in a particular geographical area, accordingly, assessee could not be classified as co-operative bank and was, therefore, eligible for deduction under section 80P(2)(a)(i).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15



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