1998 PLP 1579 (PTD)
COMMISSIONER OF INCOME-TAX Versus RAMANATHAPURAM DISTRICT CENTRAL COOPERATIVE BANK LTD.
| Citation | 1998 PLP 1579 (PTD) |
| Forum / Court | 224 I T R 226 |
| Bench Members | Thanikkachalam and Balasubramanian, JJ, |
| Parties | COMMISSIONER OF INCOME-TAX Versus RAMANATHAPURAM DISTRICT CENTRAL COOPERATIVE BANK LTD. |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1998 PLP 1579 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1998 PLP 1579 (PTD)?
The case was heard and decided by the 224 I T R 226 bench comprising: Thanikkachalam and Balasubramanian, JJ,.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1998 PLP 1579 (PTD) (COMMISSIONER OF INCOME-TAX Versus RAMANATHAPURAM DISTRICT CENTRAL COOPERATIVE BANK LTD.). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Cooperative Bank
Dividends on shares in companies
Deduction available up to Rs.20,000
Deduction in respect of interest on securities allowable
Indian Income Tax Act, 1961, S.80-P(2)(a)(i), (c). Where the assessee, a Cooperative Bank, received dividends 'on shares in companies in the accounting years relevant to the assessment years 1973-74 and 1976-77 in the sums of Rs.2,705 and Rs.3,205, respectively: Held, that the sums being less than Rs.20,000, exemption was available for both the years in terms of section 80-P(2)(c) of the Income Tax Act, 1961. Held also, that the assessee was entitled to deduction under section 80-P(2)(a)(i) in respect of interest on securities. CIT v. Madurai District Central Cooperative Bank Ltd. (1984) 148 ITR 196 (Mad.) fol. C.V. Rajan for the Commissioner. R. Venkatraman for the Assessee.
Judgment & Decree
THANIKKACHALAM, J.
At the instance of the Department, the Tribunal referred the following common question for the assessment years 1973-74 and 1976-77 for the opinion of this Court under section 256(1) of the Income Tax Act, 1961: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the interest on securities and dividend were business income of the assessee entitled to deduction under section 80-P(2)(a)(i) of the Income Tax Act, 1961?" The point for consideration in these tax cases is whether the assessee is entitled to deduction under section 80-P(2)(a)(i) of the Income Tax Act, 1961, with regard to interest on securities and dividend income? In so far as the deduction claimed under section 80-P(2)(a)(i) of the Act with regard to the interest on securities is concerned, the assessee is entitled to deduction as claimed in view of the earlier decision of this Court in the case of CIT v. Madurai District Central Cooperative Bank Ltd. (1984) 148 ITR
196. In so far as the deduction claimed with regard to the dividend is concerned, the deduction was granted by the Tribunal under section 80-P(2)(c) of the Act. The assessee was receiving dividend on shares in companies to the extent of Rs.2,705 for the assessment year 1973-74 and Rs.3,205 for the assessment year 1976-77. Since these amounts fall below the exemption limit of Rs.20,000 under section 80-P(2)(c) of the Act, deduction was granted by the Tribunal. The conclusion arrived at by the Tribunal is supported by the provisions contained in section 80-P(2)(c) of the Act wherein it is stated that in the case of co-operative society engaged in activities other than those specified in clause (a) or clause (b) (either independently of, or in addition to, all or any of the activities specified) .so much of its profits and gains attributable to such activities as does not exceed twenty thousand rupees is not includible. Exemption is available inasmuch as the assessee satisfied the conditions prescribed in the abovesaid provisions. Therefore, the assessee is entitled to deduction of dividend income in both the assessment years under consideration. Accordingly, we answer the questions referred to us in the affirmative and against the Department. M.B.A./1412/FC Order accordingly.