Appeal success: Deductions under Section 80P(2)(a)(i) allowed for Credit Co-operative Society investments.The Court allowed the appeal in favor of the Credit Co-operative Society, holding that deductions under Section 80P(2)(a)(i) were available for investments in private or public limited companies. The Court rejected the revenue's argument that there was no evidence of the appellant's status as a Credit Co-operative Society, emphasizing the appellant's registration under the Karnataka Co-operative Societies Act and its primary objective of advancing loans. Issues involved: Interpretation of deductions under Section 80P(2)(a)(i) for a Credit Co-operative Society investing in private or public limited companies.

Summary:
1. The appellant, a Credit Co-operative Society, appealed against the order of the Income Tax Appellate Tribunal which upheld the decision of the Commissioner of Income Tax (Appeals) regarding the assessment for the year 2003-04.

2. The appeal was based on the argument that deductions under Section 80P(2)(a)(i) were not available for investments in private or public limited companies. This issue had been addressed in a previous judgment by the Court, and in line with that decision, the appeal was to be allowed in favor of the appellant.

3. The revenue's contention that there was no evidence of the appellant being a Credit Co-operative Society was dismissed. The Court noted that the appellant's name clearly indicated its nature as a Co-operative Credit Society, registered under the Karnataka Co-operative Societies Act, with the primary objective of advancing loans. Therefore, the appeal was allowed in favor of the appellant, rejecting the revenue's argument. - Yamakanmardi Urban Co-operative Credit Society Ltd. Versus Commissioner of Income-tax,
Income Tax
2013 (8) TMI 1080 - KARNATAKA HIGH COURT - TMI
KARNATAKA HIGH COURT - HC
Dated:- 28-8-2013
IT Appeal No. 5002 of 2011 - -
Income Tax
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K. L. Manjunath And S. N. Satyanarayana, JJ. Sangram S. Kulkarni for the Appellant. Y.V. Raviraj for the Respondent. JUDGMENT K.L. Manjunath, The assessee has filed this appeal being aggrieved by the order passed by the Income Tax Appellate Tribunal, Panaji Bench, in ITA No.39/PNJ/2009, dated 12.11.2010, wherein the Tribunal has confirmed the order passed by the Commissioner of Income Tax (Appeals), Belgaum, in ITA No.96/BGM/06-07. 2. The assessee being aggrieved by the order of assessment for the year 2003-04 had filed an appeal before the Commissioner for Income Tax (Appeals), Belgaum, which appeal came to be dismissed by confirming the order passed by the Assessing Officer. 3. The only ground urged in this appeal is that though the appellant is a Credit Co-operative Society, any deductions made under Section 80P(2)(a)(i) is not available for investment made in a private limited company or a public limited company. The said question has been covered by the decision of this Court in ITA No.5008/2009 dated 1.4.2011. In view of the aforesaid judgment, the appeal requires to be allowed answering the question of law formulated in this appeal in favour of the appellant assessee and against the revenue. 4. The contention of the learned counsel for the revenue is that there is nothing to show that the appellant assessee is a Credit Co-operative Society. We cannot accept the arguments and the point raised by Sri Raviraj, counsel for the revenue, because the appellant's name itself discloses that it is a Co-operative Credit Society Limited. When the name itself shows that it is a Credit Co-operative Society registered under the Karnataka Co-operative Societies Act, the main object of the society is only to advance loan as a Credit Co-operative Society. In the circumstances the contention of the revenue is rejected. The appeal is allowed answering the question of law in favour of the appellant/assessee and against the revenue.
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