TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal confirms Cooperative Society status for tax deduction, orders reassessment for fair evaluation</h1> <h3>M/s. Pandyan Grama Bank Versus The Deputy Commissioner of Income Tax, Circle 1, Virudhunagar and Vica-Verssa</h3> M/s. Pandyan Grama Bank Versus The Deputy Commissioner of Income Tax, Circle 1, Virudhunagar and Vica-Verssa - TMI Issues:- Assessment of status of the assessee as a Cooperative Society for deduction under section 80P(2)(a)(i) of the Income Tax Act.- Adjudication of floating provision for NPA, loss on redemption of securities, and bad debts written off for the assessment year 2013-14.Analysis:1. Assessment of status as a Cooperative Society:- Both Revenue and Assessee appealed against orders of the ld. Commissioner of Income Tax (Appeals) regarding the status of the assessee as a Cooperative Society for claiming deduction under section 80P(2)(a)(i) of the Act for the assessment years 2012-13 and 2013-14.- The Assessing Officer initially disallowed the deduction claimed by the assessee under section 80P of the Act, considering the assessee as a company.- The ld. CIT(A) directed the Assessing Officer to allow the deduction based on the status of the assessee as a Cooperative Society, following previous Tribunal orders.- The Revenue contended that the status of the assessee as a corporate entity makes it ineligible for the deduction under section 80P(2)(a)(i) of the Act.- The Tribunal, following previous decisions, upheld the status of the assessee as a Cooperative Society and allowed the deduction under section 80P(2)(a)(i) of the Act for the assessment years under consideration.2. Adjudication of specific issues for the assessment year 2013-14:- The assessee raised concerns regarding the adjudication of floating provision for NPA, loss on redemption of securities, and bad debts written off for the assessment year 2013-14.- The ld. CIT(A) declined to address these issues due to perceived lack of tax implication.- The Tribunal observed that the Department rejected the claim made during assessment proceedings, even though the assessee had not originally claimed deductions in the return of income.- Relying on CBDT Circular No. 14 [XL-35] of 1955, the Tribunal directed the Assessing Officer to consider the genuineness of the claims and grant relief to the assessee if legally entitled, after verifying the admissibility and genuineness of the claims.In conclusion, the Tribunal upheld the status of the assessee as a Cooperative Society for claiming deduction under section 80P(2)(a)(i) of the Act, dismissing the Revenue's appeals and allowing the assessee's appeal for statistical purposes. The Tribunal also directed the Assessing Officer to reevaluate the specific issues raised by the assessee for the assessment year 2013-14, ensuring fair consideration of the claims made.
TaxTMI 
TaxTMI 
