Case Law Details
Tumkur City Credit Souharda Cooperative Society Limited Vs ITO (ITAT Bangalore)
In a significant judgment, the Income Tax Appellate Tribunal (ITAT) Bangalore ruled on the case of Tumkur City Credit Souharda Cooperative Society Limited vs. Income Tax Officer (ITO). This case, centered on the eligibility of deductions under section 80P of the Income Tax Act, 1961, has pivotal implications for cooperative societies and their tax liabilities. The tribunal’s decision to remit the case back to the Assessing Officer (AO) for fresh consideration underscores the complexities involved in tax deductions for cooperative societies.
Detailed Analysis
The case revolved around the appeal by Tumkur City Credit Souharda Cooperative Society Limited against the order of the National Faceless Appeal Centre (NFAC) for the assessment year 2017-18. The key contention was the denial of deductions under sections 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act by the lower authorities.
1. Grounds of Appeal The society raised multiple grounds of appeal, primarily arguing that the Commissioner of Income Tax (Appeals) [CIT(A)] erred in confirming the AO’s decision to deny deductions. The crux of the argument was that the income earned from interest/dividends on deposits with cooperative banks should qualify for deductions under section 80P(2).
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