2019 (9) TMI 814 - HC - Income Tax

Deduction u/s 80P - Substantial question of law - HELD THAT - we formulate the following substantial question of law. Was Totgar s 2010 (2) TMI 3 - SUPREME COURT made applicable to Co-operative Societies carrying on the business of banking or providing credit facilities to its members, by South Eastern Railway Employees Co-operative Credit Society Ltd. 2016 (9) TMI 814 - CALCUTTA HIGH COURT ? The appeal is admitted on above question. Notice of appeal is waived by Mr. Majumdar, learned senior advocate, Additional Advocate General appearing for respondent assessee. Requirement of paper books and all other formalities are dispensed with. The application is disposed of but the record be retained for purpose of the appeal.

Summary

Issues: Appeal against order passed by Income Tax Appellate Tribunal regarding the applicability of a judgment to a Co-operative Society providing credit facilities.

Analysis:
The High Court of Calcutta heard an appeal by the Revenue against an order passed by the Income Tax Appellate Tribunal related to the assessment year 2012-13. The Revenue sought to challenge the order and raised substantial questions of law. The petitioner's advocate referred to a judgment of the Supreme Court in Totgar's Co-operative Sale Society Ltd. versus ITO and its application to a Co-operative Society like the respondent. The advocate relied on a Division Bench judgment of the Court in CIT versus South Eastern Railway Employees Co-operative Credit Society Ltd. to support their argument. The Court formulated a substantial question of law regarding the applicability of the Totgar's judgment to Co-operative Societies providing credit facilities. The appeal was admitted based on this question, and the notice of appeal was waived by the respondent's senior advocate. All formalities were dispensed with, and the appeal was listed for a future date.

In conclusion, the High Court admitted the appeal based on the substantial question of law regarding the application of a specific judgment to Co-operative Societies providing credit facilities. The Court waived the notice of appeal and directed the appeal to be listed for further proceedings.