Income Tax Officer vs. Pustikar Sakh Sahakari Samiti Limited

Parties Involved

Facts Summary

The case involves an appeal by the Department of Revenue against an order of the Commissioner of Income Tax (Appeals) allowing a deduction under section 80P of the Income Tax Act, 1961, to Pustikar Sakh Sahakari Samiti Limited. The assessee claimed a deduction of Rs. 2,82,61,302/- under section 80P(2)(a)(i) of the Act. The Income Tax Officer argued that the assessee is a primary cooperative bank as per section 56(c)(1)(cca) of the Banking Regulation Act, 1946, and thus, not eligible for the deduction. The Commissioner of Income Tax (Appeals) allowed the deduction, relying on judgments from the Supreme Court and the Income Tax Appellate Tribunal, Jodhpur. The Department of Revenue appealed against this decision, but the appeal was dismissed by the Income Tax Appellate Tribunal, Jodhpur.…

Legal Issues

• 1. Whether the CIT(A) is justified in law in holding that the assessee is entitled to the deduction u/s 80P of the IT Act, 1961 of Rs. 2,82,61,302/- by ignoring that the assessee is a primary co-operative bank as per section 56(c)(1)(cca) of the Banking Regulation Act, 1946.
• 2. Whether the CIT(A) is justified in law in holding that the assessee is not a cooperative bank by ignoring that the assessee fulfilled conditions applicable to cooperative banks as per Part V of the Banking Regulation Act, 1949, and is therefore, not eligible for such deduction as provided u/s 80P(4) of the IT Act, 1961.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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