DEDUCTION OF INCOME OF CO-OPERATIVE SOCIETY CAN NOT BE DENIED U/S 80P(4)

DEAR ALL

BENEFIT GRANTED UNDER SECTION 80P FOR DEDUCTION OF INCOME OF CO-OPERATIVE SOCIETY, CAN NOT BE DENIED BY NEWLY INSERTED SECTION 80P(4) AS PER GUJRAT HIGH COURT DECISION.

CIT vs. Jafari Momin Vikas Co-op Credit Society Ltd (Gujarat High Court)

February 3rd, 2014

Bar in s. 80P(4) applies only to credit co-operative banks but not to credit co-operative societies

From CBDT circular No.133 of 2007 dated 9.5.2007 it can be gathered that sub-section (4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift & Credit Society Ltd. was under consideration. Circular clarified that the said entity not being a cooperative bank, section 80P(4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenue’s contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not cooperative banks. In the present case, respondent assessee is admittedly not a credit co-operative bank but a credit co-operative society. Exclusion clause of sub-section (4) of section 80P, therefore, would not apply