CIT v. Punjab State Co-operative Agricultural Development Bank Ltd.

389 ITR 607High Court2016#3824 most cited

What is CIT v. Punjab State Co-operative Agricultural Development Bank Ltd. authority for?

Interest income earned by a co-operative bank from surplus funds invested in scheduled banks (not co-operative societies) is taxable as income from other sources under section 56, and is not eligible for deduction under section 80P(2)(a)(i). This applies to any surplus funds not immediately required for business purposes, not just sale proceeds of members' produce.

31

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2026.

Also referred to as

CIT v. Punjab State Co-operative Agricultural Development Bank Ltd · 389 ITR 607 · 76 Taxmann.com 307 · section 56 · section 80P(2)(a)(i) · interest income · cooperative bank · surplus funds · income from other sources · Totgar's Co-operative Sale Society Ltd

Also reported as

76 Taxmann.com 307

Sections most often in play

Section 80P(2)(a)(i)Section 56Section 80P(2)(d)Section 143(3)Section 80PSection 80P(1)Section 250Section 254

Issues it is cited on

mutuality principledoctrine of mutualitysection 80(p)(2)(a)section 80p(1)section 194a(3)(v)section 71section 80p(2)(a)corpus fundsection 80p(2)(d)section 80p(4)section 80p(2)section 80p(2)(a)(i)

Judgments citing CIT v. Punjab State Co-operative Agricultural Development Bank Ltd.

Sri Jihveshwara Credit Co-Operative Society Limited, Bangalore vs. Income Tax Officer, Ward 2(2)(5), Bangalore

In the result, this issue in ITA No

ITA 548/BANG/2023[2014-15]Status: DisposedITAT Bangalore29 Sept 2023AY 2014-15

Bench: Shri George George K, Vice- & Shri Laxmi Prasad Sahu

For Appellant: Shri Prasanna, AdvocateFor Respondent: Shri V. Parithivel, JCIT (DR)
Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

…eductible under section 80P(2)(d) of the Act." 22. Again, the Division Bench of Punjab and Haryan High Court in still a later decision reported in the same volume of ITR in the case of CIT v. Punjab State Co-operative Agricultural Development Bank Ltd. [2016] 389 ITR 607/76 taxmann.com 307 (Punj. & Har.) concurred with the aforesaid view of the Gujarat High Court, distinguishing the view taken by the Andhra Pradesh High Court and Karnataka High Court, held in the following terms: '30. We are entirely in agreement with the judgment of the Gujarat High Court especially the observation that the judgment of the Supre…

Sri Jihveshwara Credit Co-Operative Society Limited, Bangalore vs. Income Tax Officer, Ward 2(2)(5), Bangalore

In the result, this issue in ITA No

ITA 547/BANG/2023[2013-14]Status: DisposedITAT Bangalore29 Sept 2023AY 2013-14

Bench: Shri George George K, Vice- & Shri Laxmi Prasad Sahu

For Appellant: Shri Prasanna, AdvocateFor Respondent: Shri V. Parithivel, JCIT (DR)
Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

…eductible under section 80P(2)(d) of the Act." 22. Again, the Division Bench of Punjab and Haryan High Court in still a later decision reported in the same volume of ITR in the case of CIT v. Punjab State Co-operative Agricultural Development Bank Ltd. [2016] 389 ITR 607/76 taxmann.com 307 (Punj. & Har.) concurred with the aforesaid view of the Gujarat High Court, distinguishing the view taken by the Andhra Pradesh High Court and Karnataka High Court, held in the following terms: '30. We are entirely in agreement with the judgment of the Gujarat High Court especially the observation that the judgment of the Supre…

M/S Ravikiran Co-Operative Credit Society Limited, Belagavi vs. Principal Commissioner of Income Tax, Hubli

In the result, the appeal filed by the assessee in ITA

ITA 94/PAN/2023[2018-19]Status: DisposedITAT Panaji08 Sept 2023AY 2018-19

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhurysl.

For Appellant: NoneFor Respondent: Shri Prabhakar Anand DJ
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

…11 (Kar.), the decision of the Hon’ble Gujarat High Court in the case of State Bank of India vs. CIT, 389 ITR 578 (Guj.) and the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Co-op. Agricultural Development Bank Ltd., 389 ITR 607 (P&H). 5. Being aggrieved by the above order of assessment, an appeal was filed before the NFAC, who vide impugned order confirmed the action of the Assessing Officer. 6. Being aggrieved, the appellant is in appeal before us in the present appeal. 7. When the matter was called on, none appeared on behalf of the appellant-assessee despite due serv…

M/S Ravikiran Co-Operative Credit Society Limited, Belagavi vs. National E - Assessment Centre, Delhi

In the result, the appeal filed by the assessee in ITA

ITA 93/PAN/2023[2018-19]Status: DisposedITAT Panaji08 Sept 2023AY 2018-19

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhurysl.

For Appellant: NoneFor Respondent: Shri Prabhakar Anand DJ
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

…11 (Kar.), the decision of the Hon’ble Gujarat High Court in the case of State Bank of India vs. CIT, 389 ITR 578 (Guj.) and the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Co-op. Agricultural Development Bank Ltd., 389 ITR 607 (P&H). 5. Being aggrieved by the above order of assessment, an appeal was filed before the NFAC, who vide impugned order confirmed the action of the Assessing Officer. 6. Being aggrieved, the appellant is in appeal before us in the present appeal. 7. When the matter was called on, none appeared on behalf of the appellant-assessee despite due serv…

M/S Ravikiran Co-Operative Credit Society Limited, Belagavi vs. The Income Tax Officer, Ward - 3, Belagavi

In the result, the appeal filed by the assessee in ITA

ITA 92/PAN/2023[2017-18]Status: DisposedITAT Panaji08 Sept 2023AY 2017-18

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhurysl.

For Appellant: NoneFor Respondent: Shri Prabhakar Anand DJ
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

…11 (Kar.), the decision of the Hon’ble Gujarat High Court in the case of State Bank of India vs. CIT, 389 ITR 578 (Guj.) and the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Co-op. Agricultural Development Bank Ltd., 389 ITR 607 (P&H). 5. Being aggrieved by the above order of assessment, an appeal was filed before the NFAC, who vide impugned order confirmed the action of the Assessing Officer. 6. Being aggrieved, the appellant is in appeal before us in the present appeal. 7. When the matter was called on, none appeared on behalf of the appellant-assessee despite due serv…

Sharanabasaveshwar Credit Souhard Sahakri Ni Halingali, Bagalkot vs. Assistant Commissioner of Income-Tax, Circle-1, Bijapur

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 107/BANG/2023[2018-19]Status: DisposedITAT Bangalore17 May 2023AY 2018-19
For Appellant: Shri Veeranna M. Murgod, CAFor Respondent: Shri Ganesh R. Ghale, Standing Counsel
Section 80P(2)Section 80P(2)(a)Section 80P(2)(d)

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC – B” BENCH : BANGALORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessment year : 2018-19 Shree Sharanabasaveshwar Credit Vs. The Income Tax Officer, Souhard Sahakari Ni., National e-Assessment Centre, A/P Halingali – 587 315. Delhi. Tal: Jamkhandi, Dist. Bagalkot. PAN: AAEAS 6699C APPELLANT RESPONDENT Appellant by : Shri Veeranna M. Murgod, CA Respondent by : Shri Ganesh R. Ghale, Standing Counsel. Date of hearing : 24.04.2023 Date of Pronouncement : 17.05.2023 O R D E R This appeal is filed by the assessee against the order of the CIT(Appeals), National Faceless…

The Ajmer Cooperative Thrift and Saving Society Limited Ajmer, Ajmer vs. CIT(A), NFAC, Ajmer

In the result, the appeal of the assessee is partly allowed

ITA 76/JPR/2022[2017-18]Status: DisposedITAT Jaipur30 Aug 2022AY 2017-18
For Appellant: Shri Sunil Porwal, (CA)For Respondent: Shri A.S. Nehra, (Addl. CIT)
Section 250Section 56Section 80PSection 80P(2)(a)

…ection 80P(2)(a)(i) . There was no infirmity in the orders of the Appellate Tribunal warranting interference. 5.4.9 Again, the Hon'ble Punjab and Haryana High Court in a later decision in Punjab State Co-operative Agricultural Development Bank Limited, [2016] 389 ITR 607 (P&H) concurred with the aforesaid view of the Gujarat High Court, distinguishing the view taken by the Andhra Pradesh High Court and Karnataka High Court, held in the following terms: 26. The judgment cannot be restricted to cases where the amount invested was the sale proceeds of the produce of an assessee's members marketed by the assessee. T…

The Sri Gowri Cooperative Society, Visakhapatnam vs. Principal Commissioner of Income Tax-1, Visakhapatnam

In the result, appeal filed by the assessee is allowed

ITA 26/VIZ/2018[2012-13]Status: DisposedITAT Visakhapatnam07 Aug 2019AY 2012-13

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Blem/S. The Sri Gowri Vs. Pr.Cit-1, Co-Operative Society, Visakhapatnam. D.No.49-34-32/1, Konathala Complex, Akkayyapalem Main Road, Visakhapatnam. Pan No. Aaaat 8140 M (Appellant) (Respondent)

For Appellant: Shri K.S.S. Sarma – AdvFor Respondent: Shri D.K. Sonawal– CIT DR
Section 263Section 80P(2)(a)

…king" appearing in section 80P(2)(a)(i) cannot be given an extended and broad meaning and that to do so would be contrary to the ratio laid down in Totgars Co-operative Society. 24. In CIT v. Punjab State Co-operative Agricultural Development Bank Ltd. [2016] 389 ITR 607/76 taxmann.com 307 (Punj. & Har.), a Division Bench of the Punjab and Haryana High Court held that the interest earned on reserve funds and call deposits could not be regarded as income attributable to one of the activities indicated in the section. The Punjab and Haryana High Court not only followed Totgars but also followed the decision of the…

Income-Tax Officer, Ward - 6(3), Pune vs. Maharashtra Bank Employees Co-Op Credit Society Ltd, Pune

ITA 1763/PUN/2017[2014-15]Status: DisposedITAT Pune06 Aug 2019AY 2014-15

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri M.R. BhagwatFor Respondent: Mrs. Shabana Parveen
Section 80PSection 80P(2)(a)

…deductible under section 80P(2)(a)(i) of the Act. The Hon'ble Supreme Court relied on earlier decisions of the Apex Court in this regard. 16. The Hon‟ble Punjab & Haryana High Court in CIT Vs. Punjab State Cooperative Agricultural Development Bank Ltd. (2016) 389 ITR 607 (P&H) has remanded the issue back to the Tribunal to decide whether the assessee was carrying on business of banking and thereafter, decide the issue of eligibility of deduction under section 80P(2)(a)(i) of the Act on the interest income attributable to the business of banking. 17. However, we find that the Hon‟ble High Court of Gujarat in State…

Sri Uma Kamandaleswara Co - Operative Rural Bank Ltd., Athreyapuram vs. The Addl. CIT, Kakinada

In the result, appeal filed by the assessee is allowed

ITA 199/VIZ/2017[2008-2009]Status: DisposedITAT Visakhapatnam13 Feb 2019AY 2008-2009

Bench: Shri V. Durga Rao, Hon’Blesri Uma Kamandaleswara Vs. Addl.Cit, Kakinada Co-Op Rural Bank Ltd., Ryali, Range, Kakinada. Athreyapuram Mandalm, East Godavari District. Pan No. Aadas 4663 B (Appellant) (Respondent)

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri P.S. Murthy – Sr.DR
Section 80P(2)(a)

…king" appearing in section 80P(2)(a)(i) cannot be given an extended and broad meaning and that to do so would be contrary to the ratio laid down in Totgars Co-operative Society. 24. In CIT v. Punjab State Co-operative Agricultural Development Bank Ltd. [2016] 389 ITR 607/76 taxmann.com 307 (Punj. & Har.), a Division Bench of the Punjab and Haryana High Court held that the interest earned on reserve funds and call deposits could not be regarded as income attributable to one of the activities indicated in the section. The Punjab and Haryana High Court not only followed Totgars but also followed the decision of the…

M/S Honnali Credit Co-Operative Society Ltd, Honnali vs. Income Tax Officer Ward-2, Shimoga

In the result, both the appeals of the assessee are allowed

ITA 2752/BANG/2017[2011-12]Status: DisposedITAT Bangalore31 Jan 2018AY 2011-12

Bench: Shri. Jason P. Boaz

For Appellant: Shri. Nayaz Pasha, CAFor Respondent: Smt. Padmameenakshi, JCIT
Section 80P(2)Section 80P(2)(a)

…ITA.2752 & 2753/Bang/2017 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI. LALIT KUMAR, JUDICIAL MEMBER I.T.A Nos.2752 & 2753/Bang/2017) (Assessment Years : 2011-12 & 2012-13) M/s. Honnali Credit Co-op Society Ltd, T. M. Road, Honnali .. Applicant PAN : AAATH4527L v. Income-tax Officer,, Ward -2, Shivamoga .. Respondent Assessee by : Shri. Nayaz Pasha, CA Revenue by : Smt. Padmameenakshi, JCIT Heard on : 24.01.2018 Pronounced on : 31.01.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : These are two appeals filed by the…