Case Law Details
Brief- In the case of The Quepem Urban Co-operative Credit Society Ltd vs. ACIT High Court of Bombay at Goa held that All three conditions of 5(1)(ccv) are to be satisfied cumulatively by a society for being termed as co-operative bank. Which are as follows :-(1) Its principal business or primary object should be business of Banking; (2) Its paid up share capital and reserves should not be less than rupees one lakh. (3)Its bye-laws do not permit admission of any other cooperative society as its member.
Brief about the case
The three appeals filed by the appellant were identical in facts and issue arising there from was similar, therefore facts of appeal no.22/2015 were only dealt with. The appellant was a Co-operative society registered under the Goa Co-operative Societies Act, 2001. The return of income relevant to A.Y. 2008-09 was filed by the appellant claiming benefit of entire income u/s 80P(2)(a)(i) of the Act, resulting in Nil taxable income which was disallowed by the A.O. while making assessment u/s 143 on the ground that appellant being primary co-operative bank was covered by the provisions of section 80P(4) of act, hence not entitled to such deduction. Being aggrieved the appellant preferred an appeal before CIT(A) who allowed the appellant’s appeal holding that the appellant was not a Co-operative Bank but a Co-operative Credit Society, thus not hit by the provision of Section 80P(4). Against the order of CIT(A), Revenue preferred an appeal to the Tribunal. The Tribunal allowed the appeal of the Revenue and held that appellant was a Co-operative Bank and therefore, not entitled to the benefit of section 80(P)(2)(i) and restored the order of A.O. Being aggrieved with the order of the Tribunal, the assessee filed an appeal before the High Court. The appeal was admitted by the Court on the following substantial question of law.
Substantial question of law
Please become a Premium member. If you are already a Premium member, login here to access the full content.
