Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
HC held that petitioner is a Co-operative Society and not a Co-operative Bank, despite cancellation of its banking licence in 2004. Applying binding SC precedent, the Court ruled that deduction under s.80P(2)(d) is available to a Co-operative Society on interest income from investments with a Co-operative Bank, which itself is a Co-operative Society. The reopening of assessment, premised on the contrary assumption that such deduction was not admissible, was found legally untenable. The impugned reopening notice was quashed and the matter decided in favour of the assessee.
HC held that petitioner is a Co-operative Society and not a Co-operative Bank, despite cancellation of its banking licence in 2004. Applying binding SC precedent, the Court ruled that deduction under s.80P(2)(d) is available to a Co-operative Society on interest income from investments with a Co-operative Bank, which itself is a Co-operative Society. The reopening of assessment, premised on the contrary assumption that such deduction was not admissible, was found legally untenable. The impugned reopening notice was quashed and the matter decided in favour of the assessee.
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