Case Law Details
University of Agricultural Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that assessee, being a employees housing co-operative society, is eligible for deduction u/s 80P(2)(d) in respect of interest earned from co-operative banks.
Facts- Assessee is an employees housing co-operative society having objects exclusively of providing housing, residential sites, house or loans for construction of house to members. AO noted that assessee is covered by the provisions of Karnataka Co-operative Society Act, 1959 and was having 1690 regular members, 141 associate members and 1 nominal member. AO noted that the assessee had claimed exemption of Rs.2 1,99,628/- u/s. 80P(2)(d) of the act.
It was noted that funds received from members towards the provision of residential sites were deposited in the co-operative banks and was used for business of providing residential sites. However, the Ld.AO denied the exemption claimed by assessee u/s. 80P(2)(d) by relying on the decision of Hon’ble Supreme Court in case of Totgar’s Co-operative Sale Society Ltd. vs. ITO.
CIT(A) also dismissed the appeal. Being aggrieved, the present appeal is filed.
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