Assessee, a co-operative society, was engaged in providing credit facilities to its members.\u00a0 It claimed deduction under section 80P(2)(a)(i). Assessing Officer held\u00a0 that during a penalty proceeding initiated against assessee under section 271D for violation of provision of section 269SS in respect of cash deposits received by it in excess of Rs. 20,000 former Chartered Accountant of assessee submitted that assessee was a co-operative bank and was entitled to receive cash deposits in excess of Rs. 20,000 from its members.\u00a0 Same was accepted by revenue and penalty under section 271D was deleted. On basis of same Assessing Officer held that assessee was co-operative bank and, accordingly, not entitled for deduction under section 80P(2)(a)(i) of the Act.\u00a0 CIT (A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that the\u00a0 assessee had collected deposits only from its members and had provided credit facilities only to its members. It did not have any transaction with non-members. Chartered Accountant of assessee had misinterpreted activity carried on by assessee to be akin to banking business and submitted assessee to be a co-operative bank-In fact, after realising its mistake, assessee had even preferred rectification petition pointing out aforesaid mistake which was still pending disposal.\u00a0 Assessee had also obtained a bona fide from said Chartered Accountant and placed it on record. Mere admission of Chartered Accountant alone would not determine status of assessee and same was to be determined based on charter documents i.e. objects and bye laws of assessee society. Accordingly the Tribunal held that\u00a0\u00a0 assessee was to be considered as a co-operative credit society and not co-operative bank and, accordingly, assessee was to be allowed deduction under section 80P(2)(a)(i).(AY.\u00a0 2007-08, 2010-11, 2013-14, 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80P : Co-operative societies-Credit facilities to members-Deposit from members-Penalty proceedings wrongly mentioning as Co-Operative bank-Deduction cannot be denied. [S. 80P(2)(a)(i), 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-20911","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5rh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20911","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=20911"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20911\/revisions"}],"predecessor-version":[{"id":20912,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20911\/revisions\/20912"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}