INCOMETAX OFFICER, WARD 1, UDUPI, UDUPI vs. BRAHMAVARA VYAVASAYA SEVA, BRAHMAVARA

In the result, the appeals filed by Revenue are allowed and the COs\nfiled by the assessee are allowed for statistical purposes

4 of 22\nITA Nos.656, 667, 668/Bang/2024\nC.O. Nos. 10, 11, 12/Bang/2024\nCo-operative Banks, the AO did not make any separate disallowance under\nsection 80P(2)(d) of the Act.\n5.\nAs regards the Assessment Years 2018-19 and 2020-21, the AO\nnoticed that the assessee had claimed deduction under section 80P

M/S. PRATHAMIKA KRUSHI PATTINA SAHAKARA NIYAMITA,HOSAPETE vs. INCOME TAX OFFICER, WARD-2, BALLARI

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

Bench: Shri Laxmi Prasad Sahuprathamika Krishi Pattina Vs The Income Tax Officer Sahakara Sangha Niymit Ward - 2 No. 350, Ward No. 15, Hospet 583201 Amaravathi Village, Hospet Tq. Ballari - 583201 Pan – Aaajp0326N (Appellant) (Respondent) Assessee By: Shri Siva Prasad Reddy, Irs (Retd) Revenue By: Shri Ganesh R. Ghale, Standing Counsel Date Of Hearing: 13.02.2023 Date Of Pronouncement: 14.02.2023 O R D E R Per: Laxmi Prasad Sahu, A.M. This Is An Appeal Filed By The Assessee Against The Order Passed By The Learned Cit(A)/Nfac, Delhi In Appeal Din & Order No. Itba/Nfac/S/ 250//2022-23/1047496227(1) Dated 18.11.2022 For Ay 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1. The Impugned Assessment Order Made U/S 143(3) Of The Act Dated, 25-11-2019, Is Arbitrary & Opposed To The Facts Of The Case & The Principles Of Natural Justice & Therefore, The Same Is Liable To Be Vacated As Void. 2. The Learned Cit(A) Failed To Appreciate: (I) That The Interest Income Accruing From The Investments Made In Statutory Compliance Of The Provisions Of The State Co-Operative Societies Act, 1959 Is Eligible For The Deduction As Business Income U/S 80P(2)(A)(I) Of The Act.

capital, if not immediately required to be lent to the members, they cannot keep the said amount idle. If they deposit this amount in bank so as to earn interest, the said interest income is attributable to the profits and gains of the business of providing credit facilities to its members only. The society is not carrying on any separate

INCOME TAX OFFICER, WARD 1, UDUPI, UDUPI vs. BRAHMAVARA VYAVASAYA SEVA, BRAHMAVARA

In the result, the appeals filed by Revenue are allowed and the COs\nfiled by the assessee are allowed for statistical purposes

4 of 22\nITA Nos.656, 667, 668/Bang/2024\nC.O. Nos. 10, 11, 12/Bang/2024\nCo-operative Banks, the AO did not make any separate disallowance under\nsection 80P(2)(d) of the Act.\n5. As regards the Assessment Years 2018-19 and 2020-21, the AO\nnoticed that the assessee had claimed deduction under section 80P

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. THE INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME-TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue

INCOME-TAX OFFICER, WARD-1, UDUPI, UDUPI vs. BRAHMAVARA VYAVAYASAYA SEVA, BRAHMAVARA

In the result, the appeals filed by Revenue are allowed and the COs\nfiled by the assessee are allowed for statistical purposes

gains of\nbusiness attributable to the activity of carrying on the business of banking\nor providing credit facilities to its members by a co-operative society and is\nliable to be deducted from the gross total income under Section 80P of the\nAct. The Hon'ble Karnataka High Court also distinguished the decision of\nthe Hon'ble Supreme Court

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK ,BENGALURU vs. INCOME-TAX OFFICE, WARD-5(2)(1), BENGALURU

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD- 5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1) , BANGALORE

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

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

4) of the Act even though without any amendment in Section 80P(2)(d) of the Act is sufficient to deny the claim of the respondent assessee for deduction under Section 80P(2)(d) of the Act. The only exception is that of a primary agricultural credit society. The depository Kanara District Central Bank Limited in the present case

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

4).\n16. In respect of the observation of the authorities below\nregarding the violation of Principle of Mutuality since the facilities\nare extended to associate members and nominal members are\nconcerned, the ratio by Hon'ble Supreme Court in case of Mavilayi\n(supra) read with section 2(f) of Karnataka Co-operative Act 1959\ncovers the issue.\n16.1

SHRI. SHANTHISAGAR CO OP CREDIT SOCIETY LIMITED,HUBLI vs. INCOME TAX OFFICER, WARD-2(1), HUBLI

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

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2017-18

4 of 32 shall be disallowed i.e. Rs. 8,34,749/- * 1.4 = 11,686 was disallowed. But no separate addition was made for the reason that entire claim of Rs. 8,34,749/- under section 80P of the Act was disallowed and added to the total income of the assessee. 7. The aggrieved assessee preferred an appeal before the learned

UDAYA SOUHARDA CO-OPERATIVE SOCIETY LIMITED ,BANGALORE vs. INCOME TAX OFFICER WARD-5(1)(1), BANGALORE

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

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2020-21

gains or capital arising from the business of carrying on banking activities or providing credit facilities to its members, then the interest income earned therefrom shall be treated as business income attributable to such activity and the assessee shall be allowed deduction under section 80P(2)(a)(i) of the Act in accordance with law. However, if it is found

INCOME TAX OFFICER, WARD-7(2)(1), BENGALURU, BANGALORE vs. M/S. BANGALORE CREDIT CO-OPERATIVE SOCIETY LIMITED , BANGALORE

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

4 of CO and Ground No. 2 of Department’s appeal : Disallowance of deduction u/s 80P(2)(a)(i) of the Income Tax Act, 1961. 13.1 The ld. A.R. submitted that the interest income from investments in various co-operative societies and banks are entitled for deduction u/s. 80P(2)(a)(i) of the Act. The details of the interest

SANGAM CO-OP CREDIT SOCIETY,BAGALKOT vs. INCOME-TAX OFFICER WARD-2 , BAGALKOT

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

4) of the Act w.e.f. Assessment Year 2007-08 was only with a view deny the benefit of deduction under section 80P(2)(i) of the Act to Co- operative Banks and that it had nothing to do with deduction under section 80P(2)(d) of the Act. 9. The CIT, after considering submissions made by the assessee, came