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1 - 6 of 6 (1.77 seconds)The Income Tax Act, 1961
Section 234A in The Income Tax Act, 1961 [Entire Act]
Section 234B in The Income Tax Act, 1961 [Entire Act]
The Citizen Co-Operative Bank Ltd, New ... vs Acit, Circle-60(1), New Delhi on 23 January, 2023
10. I have carefully considered the rival contentions and perused the orders
of the ld. lower authorities. The ld. lower authorities have denied the
deduction u/s. 80P(2)(d) of the Act relying upon the decision of
Hon'ble Supreme Court in the case of Citizen Co-op. Society as well as
decision of Hon'ble Karnataka High Court in the case of Totagars Co-
op. Sale Society Ltd. (supra).
The Mavilayi Service Cooperative Bank ... vs Commissioner Of Income Tax Calicut on 12 January, 2021
The Hon'ble Supreme Court in Mavilayi
Service Co-operative Bank Ltd. (supra) has considered the decision of
Citizen Co-operative Society Ltd. In para 22 to 35 it has considered the
issue of deduction u/s. 80P of the Act. In para 35 it is specifically
stated that the interest or dividend income derived by a co-op. society
with other co-op. societies are also entitled to deduction of whole of
such income because object of the provision being furtherance of the
co-operative movement as a whole. It further held that to whom the
provisions of section 80P(4) of the Act applies. It was held that such
prohibition does not apply to this assessee. In para 45 it upheld the
decision of Citizen Co-operative Society Ltd. and thereafter it held that
ITA No.382/Bang/2025
Page 6 of 7
giving of loans by primary agriculture credit society to non-members is
not illegal unlike the facts in Citizen Co-operative Society Ltd. I find
that in the present case also, the activities of the assessee were not
found to be illegal by the AO. The decision of Hon'ble Supreme Court
is of a 3 Judges decision which lays down criteria for allowing
deduction u/s. 80P to the co-op. societies. In the present case also I
find that the total interest received by the assessee of Rs.13,08,189
extracted at page 13 of the assessment order clearly shows that interest
income is received from the co-operative society. This fact is not
denied by the Revenue at any stage. As I have followed the decision of
Hon'ble Supreme Court rendered by 3 Judges, which binds me,
reliance by the Revenue on the decision of Hon'ble Karnataka High
Court is not proper.
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