Case Law Details
Varathappam Palayam Primary Agricultural Co-op. Credit Society Vs ITO (ITAT Chennai)
Assessee, being co-operative society, is out of the provisions of section 80P(4) and eligible for deduction under section 80P(2)(a)(i)
Facts-
The assessee is a co-operative credit society having “A” class Members as well as “B” class Members as its society’s Members. The case of AO is that in so far as deposits received from “B” class Members, there is no mutuality and they are only “nominal members”. By following judgement in the case of Citizen Co-operative Society Limited v. ACIT , the AO has held that the assessee is not entitled for claiming exemption u/s. 80P(2)(a)(i). On appeal, the CIT(A) confirmed the deletion. Aggrieved by the decision the assessee filed appeal before the ITAT.
Conclusion-
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