| Case ID |
5cb38b6e-4349-4d64-9c71-b11453553993 |
| Body |
View case body. Login to View |
| Case Number |
T.C. (A) No. 120 OF 2004 |
| Decision Date |
Nov 29, 2006 |
| Hearing Date |
|
| Decision |
The case revolves around the eligibility of a co-operative society, which is engaged in the marketing of raw silk and twisted silk, for deductions under section 80P(2)(a)(i) of the Income-tax Act. The Income-tax Appellate Tribunal had ruled in favor of the assessee, allowing the claim for deduction on the interest received from its members for supplying materials on credit. The Revenue challenged this decision, asserting that the activities of the society did not constitute banking or providing credit facilities. However, the court found that the activities were indeed covered under the provisions of the law, referencing previous judgments that supported the assessee's claim. Ultimately, the appeal was dismissed, affirming the Tribunal's decision and allowing the deduction for the co-operative society. |
| Summary |
In the case of Commissioner of Income-tax v. Tamil Nadu Co-Operative Silk Producers Ltd., the Madras High Court addressed the eligibility of co-operative societies for tax deductions under the Income-tax Act, specifically section 80P(2)(a)(i). The court determined that a co-operative society engaged in marketing silk was entitled to deductions for interest received from its members for providing materials on credit. This decision is significant as it clarifies the interpretation of 'carrying on the business of banking' within the context of co-operative societies. The ruling reinforces the legal precedent established in prior cases, thus providing essential guidance for similar future cases. The case highlights the importance of understanding tax law as it pertains to co-operative societies, emphasizing their rights to claim deductions based on their business operations. This case contributes to the growing body of legal interpretations that support the financial operations of co-operative entities in India. |
| Court |
Madras High Court
|
| Entities Involved |
Commissioner of Income-tax,
Income-tax Appellate Tribunal,
Tamil Nadu Co-Operative Silk Producers Ltd.
|
| Judges |
P.D. Dinakaran,
P.P.S. Janarthana Raja
|
| Lawyers |
N. Muralikumaran,
J. Balachander
|
| Petitioners |
Not available
|
| Respondents |
Tamil Nadu Co-Operative Silk Producers Ltd.
|
| Citations |
2009 SLD 2433 = (2009) 311 ITR 224
|
| Other Citations |
CIT v. Salem Co-operative Sugar Mills Ltd. [2006] 286 ITR 635 (Mad.),
CIT v. Madurantakam Co-operative Sugar Mills Ltd., Chengai Anna District,
CIT v. Attur Agricultural Producers Co-operative Marketing Society Ltd.
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
80P(2)(a)(i)
|