| Case ID |
2bea1b51-eba9-4d0f-afa8-973060400145 |
| Body |
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| Case Number |
M C. C. No.373 of 1993 |
| Decision Date |
Aug 13, 1996 |
| Hearing Date |
|
| Decision |
The court held that the income derived from locker rent was not entitled to special deduction under section 80-P of the Income Tax Act, 1961. The income from interest on securities earmarked for reserve funds was also not entitled to special deduction. However, miscellaneous receipts attributable to the banking business of the assessee were entitled to special deduction under section 80-P. The court emphasized the need to correlate income from various activities with the definition of 'banking' as per the Income Tax Act, thus clarifying the legal standing of cooperative banks in claiming such deductions. |
| Summary |
This case revolves around the interpretation of section 80-P of the Income Tax Act, 1961, particularly concerning the eligibility of cooperative banks for special deductions. The Madhya Pradesh High Court examined the nature of income derived from various sources, including locker rent and interest on securities, concluding that certain incomes do not correlate with banking activities and thus are not exempt from taxation. The court's ruling clarifies the legal framework under which cooperative societies can claim deductions, ensuring that only income directly related to banking activities qualifies for such benefits. This case is significant for cooperative banks seeking to understand their tax obligations and the scope of exemptions available under the Income Tax Act. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Cooperative Society
|
| Judges |
A. K. MATHUR, C, J,
S. K. KULSHRESTHA, J
|
| Lawyers |
A. Sapre for the Commissioner,
H. S. Shrivastava for the Assessee
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
JILA SAHAKARI KENDRIYA BANK MARYAUIT
|
| Citations |
1999 SLD 91,
1999 PTD 609,
(1997) 225 ITR 421
|
| Other Citations |
Bhopal Cooperative Central Bank v. C.I.T. (1988) 169 ITR 573 (MP),
M. P. Cooperative Bank Ltd. v. Addl. C.I.T. (1996) 218 ITR 438 (SC),
C.I.T. v. Dhar Central Cooperative Bank (1984) 149 ITR 438 (MP),
C.I.T. v. Bhopal Cooperative Central Bank Ltd. (1987) 164 ITR 713 (MP),
C.I.T. v. Bhopal Cooperative Central Bank Ltd. (1988) 172 ITR 423 (MP),
C.I.T. v. Jhaveri (P.K.) (1990) 181 ITR 79 (SC),
C.W.T. v. Jambukumarsingh Kasliwal (1987) 166 ITR 623 (MP),
Distributors Baroda (P.) Ltd. v. Union of India (1985) 155 ITR 120 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
80
|