Held that whether interest and dividend earned through investments in Co-Operative Bank is eligible deduction. Matter remanded to the Assessing Officer to decide afresh in light of decisions in Totgar’s Co-Operative Sale Society Ltd. v. ITO (2010)322 ITR 283 (SC) and Tumkur Merchants Souharda Credit Co-Operative Ltd. v. ITO (2015) 230 Taxman 309 (Karn) (HC). As regards profits attributable to activity of providing credit facilities to its members the Assessing Officer was directed to examine claim afresh in light of principles enunciated in Mavilayi Service Co-Operative Bank Ltd. v. CIT (2021)431 ITR 1 (SC). (AY. 2016-17)
Venoor Co-Operative Agricultural Bank Ltd. v. ITO (2021) 90 ITR 20 (SN) (Bang.)(Trib.)
S. 80P : Co-operative societies-Interest and dividend-Profits attributable to activity of providing credit facilities to its members-Matter remanded to the Assessing Officer. [S. 80P(2)(a)(i), 80P(2)(d)]