section 80P

we are of the view that the principle of mutuality is fully applicable and the interest earned on the fixed deposits with the bank and other institutions is fully covered within the parameters of mutuality. We fully endorse the view taken by CIT(A) in the case of Hill Properties Ltd. ITA No. 6223, 6249/Mum/09, that the principle of mutuality cannot be destroyed simply because the funds were not parked with members but with third parties who are not members of the Society.. Full Article

We may without prejudice also examine the assessee's claim of being a primary co- operative agricultural and rural development bank. The Revenue has rejected the assessee's claim on the ground that it does not meet the definition thereof inasmuch as its area of operation is not confined to a Taluk (Explanation (b) of section 80P (4)). In this regard, we firstly observe that the assessee has not clarified if it is a member of the Rajasthan State Co-operative Land Developm.. Full Article

DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, DEFERRED ANNUITY, CONTRIBUTIONS TO PROVIDENT FUND, SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES, ETC. [SEC. 80C, APPLICABLE FROM THE ASSESSMENT YEAR 2006-07] - SECTION 80C 1. Under section 80C, deduction would be available from gross total income. 2. Only an individual or a Hindu undivided family can claim deduction under section 80C. Eligible Amount -Any sums paid or deposited in the previous year by the ass.. Full Article

Section 80P of the Income-tax Act, 1961 – Deduction in respect of income of co-operative societies – Clarification regarding eligibility of deduction under Section 80P to Regional Rural Banks Circular No. 6/2010[F.No. 173(3)/44/2009-ITA.I] dated 20-9-2010 Section 80P of the Income Tax Act, 1961 provides for a deduction from the income of cooperative societies referred to [...] Full Article

ACIT Vs. Kribhco (ITAT Delhi) - Terms 'exempt income' and 'deduction from income' are two different propositions and, therefore, where assessee's income was not exempt under section 10 rather same was eligible for deduction under section 80P, assessee's case was not hit by provisions of section 14A. Full Article

The words the whole of the amount of profits and gains of business in section 80P(2)(a) emphasise that the income in respect of which deduction is sought must constitute the operational income and not the other income which accrues to the Society. Full Article

We have heard the arguments put forth by both the sides along with the case law relied upon. Having held above that the interest on income-tax refund does not fall under the head `Profits and gains of business or profession', it remains to be examined as to whether deduction u/s.80P is restricted only to the income falling under this head. The relevant part of section 80P(2)(a)(i) has been set out above, according to which "the whole of the amount of profits and gains of.. Full Article

SUMMARY OF CASE LAW Though the Courts have held that the provisions of exemption applicable to the co-operative societies must be construed liberally; but, that does not mean that the interpretation could overstep the clear and specific meaning provided in the language of the statute; in respect of assessee falling under clause (b) of section [...] Full Article