THE MARCEL URBAN CO-OPERATIVE CREDIT SOCIETY LIMITED,MARCEL vs. INCOME TAX OFFICER, WARD - 2(3), PANAJI

ITA 2/PAN/2023Status: DisposedITAT Panaji06 October 2023AY 2013-14Bench: HON’BLE SHRI SATBEER SINGH GODARA (Judicial Member), SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER (Through Virtual Hearing from Pune) सुनवाई की तारीख / Date of conclusive Hearing : 07/08/2023 घोषणा की तारीख / Date of Pronouncement : 06/10/2023 आदेश / ORDER PER G. D. PADMAHSHALI (Accountant Member)18 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that income derived from transactions with participative members is shielded by the doctrine of mutuality and is not taxable. However, surpluses from transactions with non-members are taxable and may be eligible for deduction under Section 80P(2).

What were the facts?

The assessee, a co-operative credit society, claimed deduction under Section 80P(2) of the Income Tax Act for income from providing credit facilities. The Assessing Officer disallowed the deduction, arguing that the society also provided loans to non-members, thus violating the principle of mutuality.

What were the issues?

Whether the principle of mutuality applies to income generated from transactions with both members and non-members of a co-operative credit society, and consequently, the eligibility for deduction under Section 80P(2).

Which sections of the Income-tax Act were involved?

Section 80P(2),Section 2(24),Section 4

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(9)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, PANAJI BENCH, PANAJI

Before: HON’BLE SHRI SATBEER SINGH GODARA & SHRI G. D. PADMAHSHALI

Pronounced: 06/10/2023

PER G. D. PADMAHSHALI, AM; This bunch of four appeals of different assessee is directed against separate orders of first appellate authority National Faceless Appeal Centre; Delhi [‘NFAC’ hereafter’] passed u/s 250 of The Income Tax Act [‘the Act’ hereafter] for various assessment years [‘AY’ hereafter].

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80P(2)

All 332 judgments and leading authorities on Section 80P(2) →

Recent GST High Court judgments

Search GST case law →