Section 80P Deduction Allowed Despite Nominal Members: ITAT Bangalore

Panchagangavali Souharda Credit Cooperative Pvt. Ltd. Vs ITO (ITAT Bangalore) The Income Tax Appellate Tribunal (ITAT), Bangalore, allowed the assessee’s appeals for Assessment Years 2017-18 and 2018-19, holding that deduction under Section 80P(2)(a)(i) of the Income-tax Act cannot be denied merely because a co-operative society has different classes of members with varying rights, where such members are recognized under the applicable State law. The Tribunal also held that enhanced business income arising from disallowance of expenditure remains eligible for deduction under Section 80P ...