Pr. CIT v. Totagars

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…ities as "investment" are ineligible for deduction under section 80P(2)(a)(i) of the Act. (Paragraph-13 of the Judgment) 12. It can thus be seen that the ratio laid down by the Hon’ble Karnataka High Court in the case of Totalgars Cooperative Sales Society in 395 ITR 611 (Karn) is that in the light of the principles enunciated by the Supreme Court in Totgars Co-operative Sale Society (supra), in case of a society engaged in providing credit facilities to its members, income from investments made in banks does not fall within any of the categories mentioned in section 80P(2)(a) of the Act. However, section 80P(2)(…

M/S. Jyothi Pattin Souhard Sahakari Niyamit, Gadag vs. Principal Commissioner of Income Tax, Hubballi

In the result, appeal of the Assessee is dismissed

…he Act. Accordingly, the PR.CIT, Mysore issued show cause notice dated 06.03.2020 to the assessee. The PR.CIT had in a show cause notice referred to the decision of the Hon’ble Karnataka High Court in the case of PR.CIT Vs. Totagars Co-operative Sale Society, 395 ITR 611 for the proposition that the assessee was not entitled to deduction under section 80P(2)(d) of the Act on the interest earned from deposits with co-operative banks. 3. The assessee, in reply to the aforesaid show cause notice of the Pr.CIT, pointed out that the claim for deduction on the aforesaid sum was made under section 80P(2)(a)(i) and not…

Sri Vasavamba Co-Operative Society Limited, Hunsur vs. The Principal Commissioner of Income Tax, Mysore

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

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2015-16 M/S. Vasavamba Co-Operative Society Ltd., Vs. The Principal Commissioner Of Income Tax, Ganesh Temple, Street Hunsur, Mysuru. Mysuru – 571 105, Karnataka. Pan : Aalas 6055 P Appellant Respondent Appellant By : Shri. V. Srinivasan, Advocate Respondent By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 10.08.2021 Date Of Pronouncement : 13.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 28.04.2020 Of Pr.Cit, Mysuru, Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Called ‘The Act’), In Relation To Assessment Year 2015-16. 2. The Assessee Is A Co-Operative Society Registered Under The Karnataka State Co-Operative Societies Act, 1959. It Accepts Deposits From Its Members & Provides Credit Facilities To Its Members. The Assessee Also Derives Income By Distributing Food Grains On Behalf Of The Karnataka State Food & Civil Supplies Corporation Ltd. In The Return Of Income Filed For Assessment Year 2015-16, The Asssessee Claimed Deduction Under Section 80P(2)(A)(I) Of The Act, 1961 Of A Sum Of Rs.10,61,494/- As Income From The Business Of Providing Credit Facilities To Its Members. The Ao Page 2 Of 15 Passed An Order Of Assessment Under Section 143(3) Of The Act Dated 31.07.2017 Accepting The Claim Of The Assessee.

…e Act. Accordingly, the Pr.CIT, Mysore issued show cause notice dated 06.03.2020 to the assessee. The Pr.CIT had in a show cause notice referred to the decision of the Hon’ble Karnataka High Court in the case of Pr.CIT Vs. Totagars Co- operative Sale Society, 395 ITR 611 for the proposition that the assessee was not entitled to deduction under section 80P(2)(d) of the Act on the interest earned from deposits with nationalized banks and co-operative banks. 4. The assessee, in reply to the aforesaid show cause notice of the Pr.CIT, the Assessee firstly submitted that the entire interest income of Rs.1,32,726/- was…

M/S. Perady Vyavasaya Seva Sahakari Bank Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Perady Vyavasaya Seva Sahakari Bank Ltd., Vs. Ito, 01, Post Perady, Ward – 1, Belthangady – 574 236. Puttur. Pan : Aaalp 0218 K Appellant Respondent Appellant By : Smt. Sheethal R. Borkar, Advocate Respondent By : Shri. Kannan Narayanan, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 04.08.2021 Date Of Pronouncement : 06.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 27.03.2019 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Engaged In The Business Of Acceptance Of Deposits From Lenders, Lending Loans, Providing Banking Facility In Rural Village. The Assessee Filed Return Of Income For The Relevant Ay Declaring Nil Income After Claiming Deduction Of Rs.1,04,78,572/- Under Section 80P Of The Income Tax Act, 1961 (Act).

…rary parking of own surplus funds not immediately required is eligible for deduction u/s.80P(2)(a)(i) of the Act. The learned DR relied on a subsequent decision of the Hon’ble Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd. 395 ITR 611 (Karn.) wherein it was held that interest income had to be assessed under the head income from other sources and hence not entitled to deduction u/s.80P of the Act. 10. We have carefully gone through the judgment relied by the learned DR. The facts of the case before the Hon’ble Karnataka High Court in the decision cited by the learned DR was th…

M/S. Venoor Co-Operative Agricultural Bank Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Venoor Co-Operative Agricultural Bank Ltd., Vs. Ito, Venur, Belthangady – 574 242. Ward – 1,Puttur. Pan : Aaajv 0184 C Appellant Respondent Appellant By : Smt. Sheethal R. Borkar, Advocate Respondent By : Shri. Kannan Narayanan, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 04.08.2021 Date Of Pronouncement : 06.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 27.03.2019 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Engaged In The Business Of Acceptance Of Deposits From Lenders, Lending Loans, Providing Banking Facility In Rural Village. The Assessee Filed Return Of Income For The Relevant Ay Declaring Nil Income After Claiming Deduction Of Rs.83,12,836 Under Section 80P Of The Income Tax Act, 1961 (Act).

…rary parking of own surplus funds not immediately required is eligible for deduction u/s.80P(2)(a)(i) of the Act. The learned DR relied on a subsequent decision of the Hon’ble Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd. 395 ITR 611 (Karn.) wherein it was held that interest income had to be assessed under the head income from other sources and hence not entitled to deduction u/s.80P of the Act. 10. We have carefully gone through the judgment relied by the learned DR. The facts of the case before the Hon’ble Karnataka High Court in the decision cited by the learned DR was th…

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

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

…e course of assessment proceedings, the A.O. proposed to disallow the claim of deduction u/s 80P of the I.T.Act by quoting the judgment of the Hon’ble Karnataka High Court in the case of Pr.CIT & Anr. v. Totagars Co- operative Sale Society reported in [(2017) 395 ITR 611 (Kar.)].The assessee contended that they are primary agricultural co-operative credit society and the main objective of the assessee was providing credit facilities to its members with a view to promote the agricultural activities undertaken by its members. It was further submitted that the amounts invested in District Central Co-operative Banks…

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

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

…e course of assessment proceedings, the A.O. proposed to disallow the claim of deduction u/s 80P of the I.T.Act by quoting the judgment of the Hon’ble Karnataka High Court in the case of Pr.CIT & Anr. v. Totagars Co- operative Sale Society reported in [(2017) 395 ITR 611 (Kar.)].The assessee contended that they are primary agricultural co-operative credit society and the main objective of the assessee was providing credit facilities to its members with a view to promote the agricultural activities undertaken by its members. It was further submitted that the amounts invested in District Central Co-operative Banks…

Primary Agricultural Credit Co-Operative Society Limited, Chikkamagaluru vs. Principal Commissioner of Income Tax, Mysore

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

…2)(a)(i) of the I.T.Act. as the same is not related to any banking activity. Further, the CIT held by relying on the ratio of the judgment of the Hon’ble Kerala High Court in the case of Pr.CIT & Anr. v. Totagars Co- operative Sale Society reported in [(2017) 395 ITR 611 (Kar.)], the assessee is not entitled to deduction u/s 80P(2)(d) of the I.T.Act since the interest income was not received from investments with other co-operative societies. 5. Aggrieved by the order passed u/s 263 of the I.T.Act, the assessee has preferred this appeal before the Tribunal. The learned Counsel for the assessee submitted that an…

M/S. the Puttur Primary Co-Operative Agriculture and Rural Development Bank Limited, Dakshina Kannada vs. The Income Tax Officer, Ward- 1, Puttur

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

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2016-17

…ITA No.1449/Bang/2019 The Puttur Primary Co-op Agriculture and Rural Development Bank Ltd., Dakshina Kannada IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER Assessment Year : 2016-17 The Puttur Primary Co-op Agriculture and Rural Development Bank Ltd. 01, Puttur PCARD Bank Ltd. ITO Ward-1 Vs. Santhekatte Puttur Puttur Dakshina Kannada 574 201 PAN NO : AAALT0387M APPELLANT RESPONDENT Appellant by : Smt. Sheetal, A.R. Respondent by : Shri Priyadarshi Mishra, D.R. Date of Hearing : 20.04.2021 Date of Pronouncement…

M/S. Koyyur Service Co-Operative Bank Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

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

…see is not eligible to claim deduction u/s 80P(2)(d) of the Act in respect of above said income. In this regard, the AO placed his reliance on the decision rendered by Hon’ble Karnataka High Court in the case of PCIT vs. Totgars Co-operative Sale Society Ltd (395 ITR 611)(Kar). 3. The Ld A.R submitted that the appeal filed by the assessee before Ld CIT(A) challenging the additions made by the AO was dismissed. Hence the assessee has filed this appeal before the Tribunal. The Ld A.R submitted that both the above said issues are covered by the decision rendered by the co-ordinate bench in the case of Karkala Co-op…

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

Bench: Shri Chandra Poojari

…e Ltd. Vs. ITO as reported in 230 Taxman 309. At this juncture, the bench pointed out that on this issue, there is one more judgment of Hon'ble Karnataka High Court rendered in the case of PCIT and Another Vs. Totagars Co-operative Sale Society as reported in 395 ITR 611 (Karn). The bench pointed out that in both these judgements, the ultimate conclusion is different because the facts are different. The bench pointed out that in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (supra), it was found that the amount deposited in bank was out of assessee's own funds and not out of its liability…

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

Bench: Shri Chandra Poojari

…e Ltd. Vs. ITO as reported in 230 Taxman 309. At this juncture, the bench pointed out that on this issue, there is one more judgment of Hon'ble Karnataka High Court rendered in the case of PCIT and Another Vs. Totagars Co-operative Sale Society as reported in 395 ITR 611 (Karn). The bench pointed out that in both these judgements, the ultimate conclusion is different because the facts are different. The bench pointed out that in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (supra), it was found that the amount deposited in bank was out of assessee's own funds and not out of its liability…

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

Bench: Shri George George K

…ved from other Co-operative Banks as income from other sources assessable u/s 56 of the I.T.Act by placing reliance on the judgment of the Hon’ble jurisdictional High Court in the case of Pr.CIT & Anr. v. Totagars Co-operative Sale Society reported in [(2017) 395 ITR 611 (Kar.)] . As regards the interest income earned from providing credit facilities to assessee’s members, the Assessing Officer stated that the assessee is not only have regular members but also associate and nominal members who cannot be equated with regular members. The A.O. held that the principles of mutuality does not exists between regular me…