Citizen Co-operative Society Ltd. v. ACIT

397 ITR 1Supreme Court of India2017#140 most cited

What is Citizen Co-operative Society Ltd. v. ACIT authority for?

A co-operative credit society engaged in banking business with the general public, accepting deposits from non-members and advancing loans to non-members, is treated as a co-operative bank. Such a society falls under the exclusionary clause of Section 80P(4) and is not eligible for deduction under Section 80P(2)(a)(i).

499

judgments rely on this decision, according to BharatTax’s citation analysis of 370,744 Indian tax judgments — from 2017 to 2026.

Also referred to as

Citizen Co-operative Society Ltd. v. ACIT · Section 80P(4) exclusion · co-operative bank definition · co-operative society banking business · deduction for co-operative banks · loans to non-members · deposits from public · 80P(2)(a)(i) eligibility · co-operative credit society deduction

Also reported as

84 Taxmann.com 114

Sections most often in play

Section 80P(2)(a)(i)Section 80P(2)(d)Section 143(3)Section 80PSection 80P(4)Section 56Section 250Section 2(19)

Issues it is cited on

section 59(2)section 2(n)section 80p(2)(a)(iii)section 5(b)section 58section 59section 80p(1)section 80p(4)section 80p(2)(a)section 80p(2)(a)(i)section 80p(2)section 2(19)

Judgments citing Citizen Co-operative Society Ltd. v. ACIT

Ulloor Machattu Vyavasaya Seva Sahakari Sangha Ltd vs. Commissioner of Income Tax (Appeals)

Appeals are disposed off within a period of four months

WP/8711/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Karavali Credit Co-Operative Society Ltd vs. Commissioner of Income Tax (Appeals)

Appeals are disposed off within a period of four months

WP/13363/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Kodavoor Vyavasaya Seva Sahakari Sangha Ltd vs. Commissioner of Income Tax (Appeals)

Appeals are disposed off within a period of four months

WP/8652/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Shankaranarayana Sahakari Vyasayika Sangha (N) vs. Commissioner of Income Tax (Appeals)

Appeals are disposed off within a period of four months

WP/15490/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Belapu Vyavasaya Seva Sahakari Sangha Ltd vs. Commissioner of Income Tax (Appeals)

Appeals are disposed off within a period of four months

WP/8670/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Hemmady Fishermens Primary Co-Operative Society Ltd vs. Commissioner of Income Tax

Appeals are disposed off within a period of four months

WP/8643/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Byndoor Vyavasaya Seva Sahakari Sangha Ltd vs. Commissioner of Income Tax (Appeals)

Appeals are disposed off within a period of four months

WP/8722/2021HC Karnataka08 Sept 2021

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

…of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not aris…

Dy CIT CC 2 (3), Mumbai vs. Ms Preity Zinta, Mumbai

In the result, assessee’s cross objection is allowed and Revenue’s appeal is treated as infructuous

ITA 6823/MUM/2019[2014-15]Status: DisposedITAT Mumbai03 Sept 2021AY 2014-15
Section 143(3)Section 271Section 271(1)(c)Section 274

…a three-Judge Bench of the Supreme Court has decided Mavilayi. 165. Mavilayi has noted that the Full Bench of Kerala High Court has reached its conclusion based on the Supreme Court's judgment Citizen Cooperative Society Ltd. v, Asst. CIT, Hyderabad [(2017) 9 SCC 364]. Indeed, Mavilayi acknowledges that the Kerala High Court's Full Bench did follow Citizen Cooperative. But it holds that in Citizen Cooperative Society Ltd., the counsel for the assessee advanced no argument that "the assessing officer and other authorities under the IT Act could not go behind the registration of the I co-operative society in orde…

Sri Ananthapadmanabha Credit Co-Operative Society Limited, Karkala vs. Income Tax Officer, Ward- 3, Udupi

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 1256/BANG/2019[2016-17]Status: DisposedITAT Bangalore01 Sept 2021AY 2016-17

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2016-17

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Shri Priyadarshi Mishra, D.R
Section 234BSection 57Section 80PSection 80P(2)(a)

…as per the bye-laws of the appellant and hence, the appellant was not entitled to deduction u/s. 80P[2][a][i] of the Act having regard to the rationale behind the judgement of the Hon'ble Supreme Court in the case of Citizens Co-operative Society reported in 397 ITR 1 [SC] under the facts and in the circumstances of the appellant's case. 4. The learned CIT[A] ought to have appreciated that the appellant cooperative society had no doubt admitted nominal members, which was permissible under the Karnataka Co-operatives Societies Act, 1959 and that there was no violation of any of the provisions of the Karnataka Co…

M/S. Potters Cottage Industrial Co-Operative Society Limited, Puttur vs. Income Tax Officer, Ward- 1, Puttur

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 1257/BANG/2019[2015-16]Status: DisposedITAT Bangalore30 Aug 2021AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri V Srinivasan, Advocate
Section 234Section 57Section 80P

…here was no violation of any of the provisions of the Karnataka Co- operative Societies Act under which the appellant was constituted and therefore, the judgment of the Hon'ble Supreme Court relied upon in the case of Citizens Co-operative Society reported in 397 ITR 1 was distinguishable and wholly inapplicable to the facts of the appellant's case. 5. Without prejudice to the above, the Learned CIT[A] ought to have appreciated the alternate claim made by the appellant for allowance of deduction u/s. 80P of the Act with reference to the extent of income derived from advances given to members apart from nominal me…

Ibrahim International Trading Company, Kanpur vs. Assistant Commissioner of Income Tax- 3, Kanpur

In the result, the appeal is allowed

ITA 340/LKW/2018[2007-08]Status: DisposedITAT Lucknow25 Aug 2021AY 2007-08

Bench: Shri T.S. Kapoorassessment Year 2007-08 Ibrahim International Ltd. Earlier Acit-3, Vs. Kanpur Known As Ibrahim International Trading Co., 40/121, Hospital Road Parade, Kanpur 208001 Pan – Aaafi 9671F (Appellant) (Respondent)

Section 150(1)Section 153(3)Section 37

…though, assessments in present appeal has been annulled on legal ground, undersigned is of the view that income of the appellant amounting to Rs.26,38,000/- is chargeable to tax in view of Supreme Court judgement in the case of Citizen Co- operative Society, 397 ITR 1 (SC) and Totgars Cooperative Sale Society Limited vs. Income Tax Officer, 322 ITR 283 (SC). Hence, jurisdictional A.O., i.e., ACIT-1, Kanpur is directed to execute remedial action under section 148 of the Act. This may be considered as direction under section 150 of the Act.” 8. It is the above direction which brings the assessee once again before…

M/S. Thannirupantha Primary Agricultural Credit Co-Operative Society Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 277/BANG/2020[2016-17]Status: DisposedITAT Bangalore30 Jul 2021AY 2016-17

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Srinivasan, AdvocateFor Respondent: Sri.Nethrapal, Addl.CIT-DR
Section 57Section 8O

…s as per the bye-laws of the appellant and hence, the appellant was not entitled to deduction u/s. 8OP[2][a][i] of the Act having regard to the rationale behind the judgment of the Hon'ble Supreme Court in the case of Citizens Co-operative Society reported in 397 ITR 1 [SC] under the facts and in the circumstances of the appellant's case. 4. The learned CIT[A] ought to have appreciated that the appellant co-operative society had no doubt admitted nominal and associate members, which was permissible under the Karnataka Co-operatives Societies Act, 1959 but, there was no violation of any of the provisions of the Ka…

M/S. Thannirupantha Primary Agricultural Credit Co-Operative Society Limited, Belthancady vs. Income Tax Officer, Ward- 1, Puttur

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 276/BANG/2020[2015-16]Status: DisposedITAT Bangalore30 Jul 2021AY 2015-16

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Srinivasan, AdvocateFor Respondent: Sri.Nethrapal, Addl.CIT-DR
Section 57Section 8O

…s as per the bye-laws of the appellant and hence, the appellant was not entitled to deduction u/s. 8OP[2][a][i] of the Act having regard to the rationale behind the judgment of the Hon'ble Supreme Court in the case of Citizens Co-operative Society reported in 397 ITR 1 [SC] under the facts and in the circumstances of the appellant's case. 4. The learned CIT[A] ought to have appreciated that the appellant co-operative society had no doubt admitted nominal and associate members, which was permissible under the Karnataka Co-operatives Societies Act, 1959 but, there was no violation of any of the provisions of the Ka…

M/S. Kadaba Sahakari Vyavasayika Bank Limited, Kadaba vs. Income Tax Officer, Ward - 1, Puttur

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

ITA 210/BANG/2020[2016-17]Status: DisposedITAT Bangalore23 Jul 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Kadaba Sahakari Vyavasayika Vs. Ito, Bank Ltd., Ward – 1, Kadaba Post, Kadaba Tq. Puttur. Dk – 574 221. Pan : Aaajk 0025 B Appellant Respondent Appellant By : Shri. V. Srinivasan, Advocate Respondent By : Smt. R. Premi, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 22.07.2021 Date Of Pronouncement : 23.07.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 06.01.2020 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Duly Registered Under The Karnataka Co-Operative Societies Act,1959 & Is Engaged In The Business Of Accepting Deposits From Members, Lending Credit Facilities To Its Members (Mainly Agricultural Loans), Distribution Of Food Grains & Other Products Under State Govt'S Public Distribution System, Sale Of Fertilizers / Pesticides Etc., To Farmers. Page 2 Of 7 3. The Assessee Filed Its Return Of Income For The Assessment Year 2016-17 On 14-10-2016 Declaring A Total Income Of Rs.64,060 After Claiming Deduction Of Rs. 1,92,69,544 U/S 80P(2)(D) Of The Act. Thereafter, The Assessee’S Case Was Selected For Scrutiny Under Cass & Notice U/S 143(2) Was Issued By The Ao On 04-072017. During The Course Of The Assessment Proceedings, The Assessee Submitted A Revised Statement Of Income Declaring A Gross Total Income Of Rs 2,17,53,604 & Total Income Of Rs Nil, After Claiming A Deduction Of Rs 2,17,53,604 Under Sec 80P Of The Act.

For Appellant: Shri. V. Srinivasan, AdvocateFor Respondent: Smt. R. Premi, JCIT(DR)(ITAT), Bengaluru
Section 143(2)Section 80PSection 80P(2)(a)Section 80P(2)(d)

…eon including interest was levied by the AO at Rs. 88,72,171/-. 8. On appeal by the assessee, the CIT(A) confirmed the order of the AO by placing reliance on the decision of the Hon’ble Supreme Court in the case of Citizens Co-operative Society Ltd. Vs. ACIT 397 ITR 1 (SC). Aggrieved by the order of the CIT(A), the assessee has preferred the present appeal before the Tribunal. 9. We have heard the rival submissions. On ground Nos.1 to 5, the Ld. A.R. submitted that the law on deduction of 80P(2)(a)(i) of the Act available to credit co-operative societies has since been settled by Hon'ble Supreme Court in the ca…

Vainganga Nagari Sahakari Pat Sanstha Ltd, Bhandara vs. Income Tax Officer, Ward-2, Bhandara

In the result, the appeal is allowed

ITA 49/NAG/2020[2016-17]Status: DisposedITAT Nagpur21 Jun 2021AY 2016-17

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviनिर्धारण वषा / Assessment Year : 2016-17 The Vainganga Nagari Sahakari Pat Vs. Ito – Ward 2, Sanstha Ltd., Bhandara Nirwan Bhawan, Tilak Ward, Bhandara, Maharashtra - 441904 Pan : Aabat0078K Appellant Respondent Assessee By Shri Manoj Soni Revenue By Smt. Agnes P Thomas Date Of Hearing 21-06-2021 Date Of Pronouncement 21-06-2021 आदेश / Order Per R.S.Syal, Vp : This Appeal By The Assessee Is Directed Against The Order Passed By The Cit(Appeals)-2, Nagpur On 31-01-2020 In Relation To The Assessment Year 2016-17. 2. The Only Issue Raised In This Appeal Is Against The Denial Of Deduction U/S 80P(2)(A)(I) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’). 3. Briefly Stated, The Facts Of The Case Are That The Assessee Is A Co-Operative Society Registered Under The Maharashtra Co-

Section 2(19)Section 80P(2)(a)

…IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR – VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER निर्धारण वषा / Assessment Year : 2016-17 The Vainganga Nagari Sahakari Pat Vs. ITO – Ward 2, Sanstha Ltd., Bhandara Nirwan Bhawan, Tilak Ward, Bhandara, Maharashtra - 441904 PAN : AABAT0078K Appellant Respondent Assessee by Shri Manoj Soni Revenue by Smt. Agnes P Thomas Date of hearing 21-06-2021 Date of pronouncement 21-06-2021 आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(Appeals)-2, Nagpur on…

Youth Foundation Nagari Sahakari Patsanstha Maryadit, Pune vs. Principal Commissioner of Income Tax -6, Pune

In the result, the appeal of the assessee is allowed

ITA 515/PUN/2020[2015-2016]Status: DisposedITAT Pune13 May 2021AY 2015-2016
For Appellant: Shri Pramod ShingteFor Respondent: Shri Mohit Jain
Section 142(1)Section 143(3)Section 263Section 80P(2)(a)

…society engaged in providing credit facilities. The Assessing Officer allowed deduction in contravention to the provision of section 80P(2)(a)(i) and placed reliance on the recent judgement in the case of Citizen Co-operative Society Ltd. vs. ACIT reported in 397 ITR 1 (SC) of Hon’ble Supreme Court. Further, he was of the opinion that the Assessing Officer has not made any enquiry in that respect nor verified as to whether claim of deduction u/s 80P(2)(a)(i) is allowable to the assessee, the Assessing Officer completed the assessment without proper application of mind. The PCIT directed the Assessing Officer to d…

M/S. Samrudha Souharda Credit Co-Operative Limited, Bangalore vs. Income Tax Officer, Ward- 5(2)(4), Bangalore

In the result, the appeal filed by the assessee is allowed

ITA 129/BANG/2020[2013-14]Status: DisposedITAT Bangalore09 Apr 2021AY 2013-14

Bench: Shri Chandra Poojari

For Appellant: Shri. Guruprasad, AdvocateFor Respondent: Shri. Ganesh R. Ghale, Standing Counsel
Section 147Section 148Section 80P(2)Section 80P(2)(a)

…ut forward by the bench but when the matter is restored back to the file of CIT(A), he Should be directed to examine the applicability of the judgement of Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT as reported in 397 ITR 1 also because as per page no. 15 of the paper book, it is shown in the Income and Expenditure Account of the assessee for the present year that assessee has received an amount of Rs. 11 700/- towards Nominal Membership Fee and therefore, it has to be seen as to whether the full amount or part amount of interest income for which deduction is claimed…

M/S. Samrudha Souharda Credit Co-Operative Limited, Bangalore vs. Income Tax Officer, Ward- 5(2)(5), Bangalore

In the result, the appeal filed by the assessee is allowed

ITA 128/BANG/2020[2011-12]Status: DisposedITAT Bangalore09 Apr 2021AY 2011-12

Bench: Shri Chandra Poojari

For Appellant: Shri. Guruprasad, AdvocateFor Respondent: Shri. Ganesh R. Ghale, Standing Counsel
Section 147Section 148Section 80P(2)Section 80P(2)(a)

…ut forward by the bench but when the matter is restored back to the file of CIT(A), he Should be directed to examine the applicability of the judgement of Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT as reported in 397 ITR 1 also because as per page no. 15 of the paper book, it is shown in the Income and Expenditure Account of the assessee for the present year that assessee has received an amount of Rs. 11 700/- towards Nominal Membership Fee and therefore, it has to be seen as to whether the full amount or part amount of interest income for which deduction is claimed…

M/S. Shreerama Credit Co-Operative Society Limited, Udupi vs. Income Tax Officer, Ward- 2, Udupi

The appeal of the assessee is partly allowed for statistical purposes

ITA 233/BANG/2020[2014-15]Status: DisposedITAT Bangalore06 Apr 2021AY 2014-15

Bench: Shri Chandra Poojari“Smc” Assessment Year: 2014-15

For Appellant: N O N EFor Respondent: Shri Ganesh R. Ghale, Standing Counsel
Section 80(2)(d)Section 80P(2)Section 80P(2)(a)

…ed order after providing adequate opportunity of being heard to both sides. The Ld. CIT(A) is directed to pass a speaking and reasoned order after comparing the facts of present case with the facts in the case of The Citizen Co-operative Society Ltd. Vs. ACIT 397 ITR 1 (SC). He is also directed to examine the facts of present case in the light of these two judgements of Hon’ble Karnataka High Court rendered in the case of Tumkur Merchants Souharda Credit Co-Operative Ltd. Vs. ITO 230 Taxman 309 and PCIT and Another Vs. Totagars Co-operative Sale Society (supra) and pass necessary order as per law in the light of…

M/S. Bannur Rytara Seva Sahakari Sangha Limited, Puttur vs. The Income Tax Officer, Ward- 1, Puttur

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

ITA 576/BANG/2020[2016-17]Status: DisposedITAT Bangalore30 Mar 2021AY 2016-17

Bench: Shri George George K

For Appellant: Sri.K.Mallaha Rao, AdvocateFor Respondent: Sri.Ganesh B.Ghale, Standing Counsel
Section 143(3)Section 56Section 80PSection 80P(2)(a)

…ers and associate members, hence, the assessee-society is not eligible for deduction u/s 80P(2)(a)(i) of the I.T.Act. The A.O. in holding so, relied on the judgment of the Hon’ble Apex Court in the case of The Citizen Co-operative Society Ltd. v. ACIT [(2017) 397 ITR 1 (SC)]. 4. Aggrieved, the assessee preferred an appeal to the first appellate authority. The CIT(A) confirmed the view taken by the Assessing Officer. 5. Aggrieved by the order of the CIT(A), the assessee has preferred this appeal before the Tribunal. The learned Counsel for the assessee submitted that the issue as regards the claim of deduction u…