2020 (10) TMI 631

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....ative societies act 1959 and is engaged in the business of providing credit facilities to its members. Assessee during the years under consideration filed an ill return of income after claiming deduction of Rs. 25, 06, 874/-and 27, 68, 927/-under section 80 P of the act. The return was selected for scrutiny and during assessment proceedings, Ld. AO noticed that principles of new brutality were violated by assessee. Ld. AO thus denied the deduction claimed under section 80 P of the act by following decision of Hon'ble Supreme Court in case of Citizen co-operative society Ltd., reported in (2017)84 taxman.com114. Ld. AO disallowed the entire deduction by observing as under: a) interest income earned out of investment with cooperative....

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....ch was in gross violated of bye laws and provisions of the act and as such, exemption under section 80 P was denied. He submitted that, ratio of Hon'ble Supreme Court in case of Citizen Co-operative Society Ltd., (supra), therefore will not be applicable to the facts of the present case. Ld. AR submitted that decision of Hon'ble Karnataka High Court in case of PCIT Vs. Totgars Co-operative Sale Society reported in 395 ITR 611 relied by Ld.CIT(A) is also not applicable to present facts of the case. Ld.AR submitted that, assessee's facts are more similar with facts in case of Tumkur Cooperative society Ltd., Merchants Souhards Co-operative Society Ltd., reported in 230 Taxman 309 he also submitted that there has been various decisions of this....