Case Law Details
Thorapadi Urban Co-op Credit Society Limited Vs ITO (Madras High Court)
Conclusion: Deduction under section 80P(2)(d) was allowable on receipt of interest from co-operative bank as a Co-operative Society was only a co-operative society as defined under the Act, be it a Co-operative Society carrying on banking business or Co-operative Society carrying on the other businesses or a Co-operative bank.
Held: The main issue was to decide in the present case was as to whether assessee-co-operative society was entitled for a deduction under Section 80P(2)(d) for the interest income received from the Co-operative Bank. It was held that assessee produced a document to show that the Co-operative Bank, where they had made investments was registered under the Tamil Nadu Co-operative Societies Act, 1983 on 20.5.2003. A copy of the Certificate of Incorporation of the said Co-operative Bank was also produced. Therefore, it was clear that the investment made by assessee was a Co-operative Bank registered under the Co-operative Societies Act. By reading of the definition u/s 2(19) it would be clear that ‘Co-operative Society’ means a Co-operative Society registered under Co-operative Societies Act, 1912. Thus, a Co-operative Society was only a co-operative society as defined under the Act, be it a Co-operative Society carrying on banking business or Co-operative Society carrying on the other businesses or a Co-operative bank. Following the decision in case of Commissioner of Income Tax Salem v. The Salem Agricultural Producers Co-operative Marketing Society Ltd” , assessee which was a Co-operative society, was entitled to avail the benefit under 80P(2)(d).
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The issue involved in all these writ petitions are common and hence, they are taken up together, heard and disposed off through this common order.
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