Where Assessee co-operative society collected deposits only from its members and had no transaction with non-members. It filed a return of income declaring Rs. Nil after calculating the deduction u\/s. 80P(2)(a)(i) of the Act. The AO observed that the assessee is carrying on banking business as stated by the former Chartered Accountant.<\/p>\n
The Tribunal noted that the assessee had collected deposits only from its members and had provided credit facilities only to its members and did not have any transaction with non-members. It was registered under Maharashtra State Co-operative Societies Act, 1960, providing financial assistance to its members. The former Chartered Accountant of the assessee had misinterpreted activity carried on by the assessee to be akin to banking business. On realising its mistake, the assessee had even preferred a rectification petition pointing out the mistake, which was still pending disposal. Mere admission of Chartered Accountant alone would not determine the status of assessee, and same was to be determined based on charter documents, i.e. objects and bye-laws of assessee society.\u00a0 The assessee was to be considered as a co-operative credit society and not co-operative bank and allowed deduction under section 80P(2)(a)(i). (ITA No\u00a0 4296 & 4297 of 2016, 5983 of 2017 and 403 & 4211 (MUM.) of \u00a02018, dt 03.12.2020( AY. 2007-08, 2010-11, 2013-14 , \u00a02014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80P: Co-operative societies \u2013 Deposit only from Members \u2013 Determination based on Charter documents \u2013 Not based on mere admission \u2013 Deduction allowable.[ S.80P(2)(a)(i), 269SS, 271D]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-17270","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4uy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=17270"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17270\/revisions"}],"predecessor-version":[{"id":17271,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17270\/revisions\/17271"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=17270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=17270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=17270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}