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Lalitamba Pattina Souharda Sahakari Niyamita v. ITO (2018) 166 DTR 400/ ( 2019) 307 CTR 770 (Karn.)(HC)

S. 80P : Co-operative societies -Providing credit facilities to members – Interest earned by the society in investing in the banks – Activity of carrying on business in the banking or providing credit facilities to its members is eligible for deduction- Matter remanded to Assessing Officer.[ S. 80P(2)(a)(i)]

Held  by the High Court that:

  1. Interest earned by the society in investing in the banks is attributable to the activity of carrying on business in the banking or providing credit facilities to its members by a co-operative society and is liable to be deducted from the gross total income under Section 80P of the Act

Revenue Authorities mixing up the provisions of Section 80P(2)(a)(i) and Section 80P(2)(d) of the Act cannot reject the claim of assessee under Section 80P(2)(a)(i) without giving a proper finding on the issue. Matter remanded to Assessing Officer . (AY. 2012-2013)