| Case ID |
37ac23a4-2f8e-474d-aee2-f34f7c699ae6 |
| Body |
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| Case Number |
D-2741 of 1988 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Madhya Pradesh High Court upheld the Tribunal's decision that the income of the Bhopal Co-operative Central Bank from interest on securities, commission, subsidy, donation, and locker rent was exempt under section 80P of the Income-tax Act, 1961. The Court noted that the Tribunal had relied on previous decisions, including CIT v. Dhar Central Co-operative Bank and Bihar State Co-operative Bank Ltd. v. CIT, which supported the Tribunal's conclusions. The application under section 256(2) was dismissed as no question of law arose that warranted further examination by the Tribunal. |
| Summary |
This case revolves around the taxation of income generated by co-operative banks, focusing on the exemptions available under section 80P of the Income-tax Act, 1961. The Madhya Pradesh High Court examined whether the income from various sources such as interest on securities, commission, and donations was exempt from tax. The Court affirmed the Tribunal's ruling, which had previously rejected the department's application for reference, citing established precedents that supported the co-operative bank's claims for exemption. The decision emphasizes the legal framework surrounding co-operative societies and their income, clarifying the application of tax laws to such entities. This case is significant for co-operative banks seeking to understand their tax obligations and the potential for exemptions under the Income-tax Act. Key terms include income tax exemptions, co-operative societies, and legal precedents in taxation. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Bhopal Co-operative Central Bank Ltd.
|
| Judges |
S.S. Sharma,
K.L. Srivastava
|
| Lawyers |
Not available
|
| Petitioners |
Not available
|
| Respondents |
Bhopal Co-operative Central Bank Ltd.
|
| Citations |
1988 SLD 1671,
(1988) 172 ITR 423
|
| Other Citations |
CIT v. Dhar Central Co-operative Bank [1984] 149 ITR 438 (MP),
Bihar State Co-operative Bank Ltd. v. CIT [1960] 39 ITR 114 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
80P,
256(1),
256(2),
147(b)
|