Revenue appeal against Tribunal's order confirming deduction to a co-operative urban bank under Section 80P(2)(a)(i). Both sides conceded the issue was covered by the Division Bench decision in Commissioner of Income-tax v. Andhra Pradesh State Co-operative Bank Ltd.; appeal dismissed.
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13447|
HIGHCOURTFORTHE STATE OF TELANGANA AT HYDERABAD
WEDNESDAY,THE NINTH DAY OF JULY " iiii lrousAND AND rwENrY FlvE
PRESENT
THE HONOURABLESRI J.USTICEP'SAM KOSHY AND THE HoNouRABLEsRl 'rusilEilranslNcRAo NANDIKoNDA INCOME TAX TRIBUNAL AP PEALN O: 338OF2010
lncomeTax TribunalAppeal UnderSectron 260Aof the lncome TaxAct'1961 in.trnNo'71S/Hvd/2007for the aoainst theorder dated;:ffioo;;r;."0 AisessmentYear 2004-20"0; ;;th;fiie of tne lncome Tax AppellateTribunal' ftyOeraOaaBench'B', HYderabad'
Between:
Commissionerof lncome Tax-ll"Hyderabad
...APPELLANT
AND
M/s. A.P.Mahesh Co-op UrbanBankLtd''5-3-989' Sherza Estate' Nizam Shahi Road,HYderabad
...RESPONDENT
Counselfor the Appellant:SMT'B'SAPNAREDDY (SCFOR INCOME TAX)
Counselfor the Respondent: SRIY RATNAKAR
The Courtdelivered the following: JUDGMENT
::1
HONOURABLE SRIJUSTICE P.SAM KOSHY H.N,BLE sRr JUsrrcE ,tffi" RAo NANDTK.NDA
INCOME TAX TRIBUNAL APPEAL NO.338 OF 2O1O
IUDGMENT: (per Hon,ble Sri lustice p.Sam Koshy)
The present appeal has been filed under Section 260_A of Irrcome Tax AcL 7967 (for short, the ,.Act,) assailfurg the order passed by Income Tax Appellate Tribunal, Hyderabad Bench_B, Hyderabad (for shorr,,Tribunal,,) in ITA No.Z75/Hyd/07, dated 37.12.2001 for the Assessment year 2004_05.
1
! i i I i i I I I l i 1 i I I
PSK,J& ITTA Noj3&of20l0
"11. Section 80Pof the Act grants deductionin respect of various categoriesof incomeof a co-operative society' If any co-operativesocietycarries on the busir-ressof banking' theinterestincomereceivedbyaco-operativesocietyonits investment/depositsis aLtributableto bankingbusiness' The provisiondoes not make any distinctionin so Iar as the interest earnedby depositin a bank and interestearnedon the compulsivedeposit which is madeas required under the relevantstatute. It is no doubttrue that a co-operative societymay be requiredto earmark some portion of its capital forexclusive deposit in Governmentprescribed Securitiesorbanks.Aco-operativesocietymayearnprofits by wayof interestby parking their fundsin high-yielding depositsor may earn income by circulatingits capital amongits members in the courseof their banking business' All the incomefrom bankingbusinesswhich is referable to Section 80P(2)(a)(i)o{ the Act would quaiifyfor deduction under theAct."
t (zorl) g:o trn srs
PSK,J & N?,{R,J ITTA No.3j8 of20t0
3
;f ..-1.-
6 Accordingly, the Appeal stands dismissed. There shall be no order as to costs
Pending miscellaneous applications, if any, shall stand closed.
To,
//TRUE COPY//
SD/- A.V.S. PRASAD E UTY REGISTRAR ,,R t!
I SECTION OFFICER
TPK/gh
fir
HIGH COURT
DATED:09 t}tt2O2S
-a' - ll i,, t t'<br>10 sEP 2025
+ -f,'
l) t.-S I.AT C 'rr:L)
JUDGMENT
ITTA.No.338 of 2O1O
ITTA IS DISMISSED
6 .s\2f.4 qr 6ffiI-a:
1 issue framed by the court
Whether the assessee co-operative bank is entitled to deduction under Section 80P(2)(a)(i) on income from investments made out of non-statutory and voluntary reserves.
Colour shows how this judgement treated each authority
Commissioner of Income-tax v. Andhra Pradesh State Co-operative Bank Ltd.Followed
(2011) 9 SCC · Who else cites this
2 provisions across 1 enactments
Commissioner of Income Tax-II, Hyderabad
M/s. A.P. Mahesh Co-op Urban Bank Ltd.
P. Sam Koshy
Nagesh Bheema Rao Nandikonda
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
