1. Search Case laws by Section / Act / Rule — now available beyond Income Tax. GST and Other Laws Available
2. New: “In Favour Of” filter added in Case Laws.
Try both these filters in Case Laws →
TaxTMI Login
🚀 New: Section-Wise Filter ✕
Just a moment...
1. Search Case laws by Section / Act / Rule — now available beyond Income Tax. GST and Other Laws Available
2. New: “In Favour Of” filter added in Case Laws.
Try both these filters in Case Laws →
Press 'Enter' to add multiple search terms. Rules for Better Search
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
<h1>Court denies tax exemption to society due to voting rights deviation from law, ruling in favor of Revenue.</h1> The High Court affirmed the Tribunal's decision, ruling that the assessee society was not entitled to exemption under section 80P(2)(a)(vi) of the ... Co-operative Society Issues Involved:1. Entitlement to exemption u/s 80P(2)(a)(vi) of the Income-tax Act, 1961.Summary:1. Entitlement to exemption u/s 80P(2)(a)(vi) of the Income-tax Act, 1961:The core issue was whether the assessee society, a co-operative society assessed as an association of persons, was entitled to exemption u/s 80P(2)(a)(vi) of the Income-tax Act, 1961. The Income-tax Officer denied the exemption, but the Appellate Assistant Commissioner allowed it, stating that the society met the conditions for exemption. The Revenue appealed to the Tribunal, arguing that the society's bye-laws allowed voting rights to social workers and individuals interested in the uplift of adivasi labourers, which contravened the proviso to section 80P(2)(a)(vi). The Tribunal upheld the Revenue's view, denying the exemption.The High Court examined the relevant bye-laws and the proviso to section 80P(2)(a)(vi), which restricts voting rights to individuals who contribute their labour, co-operative credit societies, and the State Government. The Court noted that the society's bye-laws extended voting rights beyond these categories, thus failing to meet the proviso's conditions. The Court emphasized that the legislative intent was to prevent outsiders from influencing the society's operations, ensuring that only specified members had voting rights.The Court rejected the assessee's argument that the proviso should be interpreted to allow exemption unless outsiders were actually enrolled as members with voting rights. The Court held that the language of the proviso was clear and unambiguous, and a literal interpretation did not lead to absurd results. The Court concluded that the Tribunal correctly interpreted the proviso and denied the exemption.Conclusion:The High Court affirmed the Tribunal's decision, holding that the assessee society was not entitled to exemption u/s 80P(2)(a)(vi) of the Income-tax Act, 1961, as its bye-laws did not restrict voting rights to the specified categories of members. The reference was disposed of in favor of the Revenue and against the assessee, with no order as to costs.
TaxTMI 
TaxTMI 
