Case Law Details
Case Name : Solitaire CHS Ltd. Vs PCIT (ITAT Mumbai)
Related Assessment Year : 2014-15
Courts :
All ITAT ITAT Mumbai
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Solitaire CHS Ltd. Vs PCIT (ITAT Mumbai)
Though the co-operative banks pursuant to the insertion of subsection (4) to Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but as a co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for claim of ded...
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OFFHAND (to repeat and reiterate):
Assessee, a CHS, has claimed that interest earned on FDs with a co¬-operative bank, – which is a ‘co-operative society’ within its wider meaning of the law,- is deductible U/s.80P(2)(d). The ITAT has upheld the claim for tax exemption on the stated ground.
Be that as it may, in any view, in the case of a ‘housing association’ (including a ‘CHS’), by virtue of the well settled common law “Doctrine of Mutuality” , there is no scope for taxing it under the IT Act. For MORE look through the in-depth discussion HERE
https://taxguru.in/author/vswami/
6. Housing Association & ‘’Mutuality”- (Supplement II)
7. HOUSING ASSOCIATION -Mutuality Principle- Supplement I
8. “Mutuality’ – Doctrine of- A Critical Study
Also, suggest going through the plethora of case law cited therein.