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Income Tax - The MSCS Act, 2002, along with MSCS Rules, 2002 govern the compliance requirement of MSCS.MSCS is a society registered or deemed to be registered under this Act and includes a national cooperative society and a Federal cooperative. It may make its bye-laws consistent with the provisions of this act and the rules made there under...
Read MoreIncome Tax - 1. Interest earned from investment in Co-operative & other banks: It is known fact that socities are earning interest income from investments such as F.D., etc. with co-operative & other banks. In the computation of total income, the assessee wrongly claim the said interest income as deduction u/s. 80P(2)(d) of the Income tax Act, 1961....
Read MoreIncome Tax - Co-operative banking is being aided and encouraged by the State Governments vide the various provisions of State Co-operative Societies Acts. A co-operative bank is a co-operative society, which is union of persons established according to the principles of equality, the number of whose members is unlimited and the purpose of which is, by...
Read MoreIncome Tax - Co-operative credit societies enjoy the deduction u/s 80P in respect of the whole of their income attributable to banking business. However, the term ‘income attributable to banking business’ has become a vexed term, especially in light of recent judicial developments on the subject matter. Recently, IT department has started denying ...
Read MoreIncome Tax - U/s 2(19) of the Income Tax Act 1961, ‘cooperative society’ means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of the cooperative societies....
Read MoreThe Citizens Cooperative Society Ltd Vs. ACIT (Supreme Court of India) - It is noticed by the Assessing Officer, after discussing in detail the activities of the appellant, is that the activities of the appellant are in violations of the provisions of the MACSA under which it is formed. It is pointed out by the Assessing Officer that the assessee is catering to two disti...
Read MorePrimary Agriculture Credit Co-opeative Society Ltd Vs CIT (Appeals), (ITAT Bangalore) - When the amount which was deposited in the bank was not an amount due to members and it was not the liability of the society to the members then the interest earned from the deposits in the bank was held to be eligible for deduction under Section 80P (1) as well as 80P(2)(a)(i) of the Act....
Read MoreM/s. The Erumely Service Co-operative Bank Ltd. Vs. Principal CIT (ITAT Cochin) - Principal Commissioner of Income Tax was trying to substitute a legally permissible view taken by the Id. AO with another view which was not a rational one. Hon'ble Apex Court in the case of Malabar Industrial Co. Ltd (supra) has clearly held that revisionary powers u/s.263 of the Act cannot be invo...
Read MoreThe Kizhathadiyoor Service Coop Bank ltd Vs. ITO (ITAT Cochin) - Interest income on investments of Service Co-operative Banks is business income eligible for deduction u/s 80P(2)(a)(1) and not income from other sources. SC decision in Totgar case not applicable in this case....
Read MoreJaipur Sahakari Kraya Vikraya Samiti Ltd. Vs ITO (ITAT Jaipur) - The case of assessee was reopened and the assessment under section 144 read with section 147 of the IT Act, 1961. While framing the assessment, the AO restricted the deduction claimed u/s 80P(2)(c)(i) of the Act and also confirmed the disallowance u/s 40(a)(ia) consequent to deposit...
Read MoreCircular No. 6/2010-Income Tax - (20/09/2010) - Circular No. 6/2010-Income Tax 2.As Regional Rural banks (RRB) are basically corporate entities (and not cooperative societies, they were considered to be not eligible for deduction under section 80P when the section was originally introduced. However, as section 22 of the Regional Rural Bank Act p...
Read MoreThe Citizens Cooperative Society Ltd Vs. ACIT (Supreme Court of India) -
Primary Agriculture Credit Co-opeative Society Ltd Vs CIT (Appeals), (ITAT Bangalore) -
M/s. The Erumely Service Co-operative Bank Ltd. Vs. Principal CIT (ITAT Cochin) -
The Kizhathadiyoor Service Coop Bank ltd Vs. ITO (ITAT Cochin) -
Jaipur Sahakari Kraya Vikraya Samiti Ltd. Vs ITO (ITAT Jaipur) -
The Chirakkal Service Co-Operative Bank Ltd Vs CIT (Kerala High Court) -
Lands End Co-operative Housing Society Limited Vs ITO (ITAT Mumbai) -
