23 December 2012
My query is whether an employee coop credit society which is engaged in the busienss of extending credit to its members is eligible for deduction u/s 80p (2)(a) of the I.T. Act after insertion of sub section 4 under section 80P wef Finance Act,2007? Whether any Mumbai ITAT judgement is available in this respect? please show light on definition of 'banking business'? Activity of employee credit society is deemed to be a banking business when it does not have any licence from RBI and it is not using the word as Bank?
25 December 2012
You may go through judgement - [2012] 24 taxmann.com 127 (Pune Trib.) IN THE ITAT PUNE BENCH 'B' Incometax Officer, Ward 1(4) v. Jankalyan Nagri Sahakari Pat Sanstha Ltd.* IT APPEAL NO. 598 (PUNE) OF 2011 Dt. 26/06/2012. [ASSESSMENT YEAR 2007-08]
Section 80P Deduction Income of cooperative societies Whether Cooperative credit society is distinct and separate from cooperative bank nor can it be said as a primary cooperative bank within meaning of Banking Regulation Act, 1949 Held, yes Whether, therefore, a cooperative credit society Is entitled for deduction under section 80P(2)(a)(i) Held, yes [In favour of assessee]
2.IN THE ITAT PANAJI BENCH Deputy Comm. of I.T.Central Circle, Panaji, Goa v. Jayalakshmi Mahila Vividodeshagala Souharda Sahakari Ltd. IT APPEAL Nos. 1 to 3 (PNJ) of 2012 [ASSESSMENT YEARS 2007-08 TO 2009-10] March 30, 2012
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