Can business of providing credit facilities to members be regarded as business carried on by a Co-operative society

Last updated: 10 September 2021
Quick Summary
This case concerns a co-operative credit society that claimed a tax deduction under Section 80P(2)(a)(i) on its entire income. The Assessing Officer (AO) disallowed this deduction, arguing that the society's provision of credit facilities to nominal and associate members violated the principle of mutuality, citing a Supreme Court decision. The tribunal, however, referred to a more recent Supreme Court ruling and restored the issue to the AO for further examination, allowing the appeal for statistical purposes.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the order dated 14.03.2019 passed by Ld CIT(A), Mangalore and it relates to the assessment year 2016-17.

Citation :
ITA No.1256/Bang/2019

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