Case Law Details
ACIT Vs Visnagar Taluka Majoor Sahakari Mandli Limited (ITAT Ahmedabad)
It is pertinent to note that the decision of Hon’ble Apex Court in the case of Totgars Co-operative Sale Society Limited (supra) the issue was related to interest income earned from Nationalised Bank which is taxed under the income from other sources. But in case of co-operative credit societies/cooperative banks which has different setup altogether where deduction under Section 80P(2)(a)(i) of the Act is allowable when the interest is derived from credit provided to its members. The same cannot be equated with Nationalised Bank which has dealt by the Apex Court. In the present case the assessee society had received interest income from co-operative banks only and the assessee is a credit society and funds received from its members only thus the deduction is properly claimed by the assessee. The decision of Hon’ble Gujarat High Court and the ratio laid down by the Hon’ble Jurisdictional High Court is applicable in assessee’s case. In fact, the decision of Hon’ble Apex Court has also not debarred for claiming deduction under Section 80P wherein the credit facilities are given to the members and is directly related to the business while deriving interest. Thus, the appeal filed by the Revenue is dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
These appeals are filed by the Revenue against two different orders, both dated 08.08.2019, passed by the CIT(A), Gandhinagar, Ahmedabad for the Assessment Years 2014-15 & 2013-14.
2. The Assessee has raised the following grounds of appeal:
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