Co-operative Bank considered as Co-operative Society u/s 80P of Income Tax

By | January 27, 2017
(Last Updated On: January 27, 2017)

PCIT Vs. The Totagars Co-operative Sale Society, I.T.A. No. 100069/2016, Date of order: 05.01.2017, High Court of Karnataka

Issue:
Whether for the purpose of Section 80P(2)(d) of the Income Tax Act,1961, a Co-operative Bank should be considered as a Co-operative Society?

Held: Yes

Brief Facts: The assessee filed its return of income, and claimed a deduction for the interest income earned from a co-operative bank u/s 80P of the Act. The AO was of the opinion that this interest income is not deductible u/s 80P and added the same to the total income of the assessee. However, CIT(A) has deleted the addition and aggrieved by the same, the revenue has preferred the appeal before the Hon’ble ITAT, whereas the Hon’ble ITAT has confirmed the order of CIT(A). Therefore, revenue has preferred an appeal before the Hon’ble High Court.

Held:
In this regard, the Hon’ble High Court held that “Co-operative Banks” was merely a variety of a Co-operative society, thus co-operative bank would necessarily be covered by the word “Co-operative society”.
Therefore, the appeal of the revenue is dismissed.

IN THE HIGH COURT OF KARNATAKA

DHARWAD BENCH

DATED 5TH JANUARY 2017

Pr Commissioner of Income tax , Income tax Officer

Vs

The Totagars Co operative Sale Society

I.T.A No 100069/2016

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