#co-operative society

The Bombay High Court ruled that a collector may not demand a no-objection from a co-operative society as a pre-condition for registering a consent decree under the Registration Act. This clarifies that Section 37A of the Maharashtra Land Revenue Code does not extend to such registrations. Property owners and societies gain certainty that registration cannot be blocked by administrative consent.

The ITAT Bangalore ruled that interest earned on deposits by a credit cooperative is an allowable deduction under Sec 80P(2)(a)(i), interpreting ‘attributable’ to mean income arising from the society’s credit activities. This clarifies that such interest can be claimed as business income, benefiting credit co-operatives seeking tax relief on deposit earnings.

ITAT Mumbai rules that co-operative societies earning interest from deposits with co-operative banks qualify for deduction under Section 80P(2)(d), reinforcing the co-operative character of such banks under tax law. The decision clarifies eligibility for co-operative societies, impacting tax assessments for similar entities.

Bombay HC's Nagpur Bench reinforces that litigants cannot file a separate suit to set aside a compromise decree under Order 23 Rule 3-A CPC, even if fraud or unauthorized compromise is alleged. The ruling underscores the finality of compromise decrees and bars collateral challenges, impacting property and co-operative society disputes.

Bombay HC clarifies that de-registration under Section 21-A of the Maharashtra Co-operative Societies Act mandates evidence of fraud during registration, not merely title disputes, pending FIRs, or procedural lapses. The ruling restores the society's registration, reinforcing that fraud must be proven at the inception stage for de-registration to be valid.

The Kerala High Court has ordered a co-operative society to accept repayment of Rs. 1,00,314 in twenty equal monthly instalments after the petitioner’s husband was diagnosed with terminal throat cancer. This ruling establishes that financial hardship arising from critical medical emergencies triggers equitable relief under co-operative recovery proceedings, shielding vulnerable borrowers from coercive enforcement while upholding the society’s right to recovery.

ITAT Mumbai holds that interest income earned by co-operative societies from co-operative banks qualifies for deduction under Section 80P(2)(d), clarifying statutory interpretation.

Bombay High Court holds that accepting installment payments as custodian and failing to deposit them with finance corporation constitutes criminal breach of trust under Section 406 IPC.