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2014 (11) TMI 598 - ITAT BANGALORECondonation of delay – delay of 65 days – Held that:- Assessee in the affidavit, has explained the reasons for the delay - the Hon. Secretary was looking after all the income tax affairs of the assessee society - On 22.11.13, he was hospitalized and operated on 30.12.13 for heart problems - Copy of the discharge summary of KLES Heart Foundation, Belgaum has also been filed in support of the averments in the affidavit - Thus, reasons for the delay have been explained to be due to ill-health of the Hon. Secretary of the assessee - delay in fling the appeal was occasioned due to a reasonable cause – delay condoned. Denial of deduction u/s 80P(2)(a)(i) - Assessee is a co-operative society registered under the Karnataka State Co-operative Societies Act, 1959 - Held that:- In ACIT, Circle 3(1), Bangalore v. M/s. Bangalore Commercial Transport Credit Co-operative Society Ltd. [2011 (4) TMI 1222 - ITAT BANGALORE] - it has been held that section 80P(4) is applicable only to cooperative banks and not to credit cooperative societies - The intention of the legislature of bringing in cooperative banks - Since the assessee is a cooperative society and not a cooperative bank, the provisions of section 80P(4) will not have application in the assessee’s case and therefore, it is entitled to deduction u/s 80P(2)(a)(i) of the Act – The existing sub-section 80P(2)(a)(i) shall be applicable to a cooperative society carrying on credit facility to its members - This view is clarified by Central Board of Direct Tax vide its clarification No.133/06/2007-TPL dated 9th May, 2007 - The new proviso to section 80P(4) which is brought into statute is applicable only to cooperative banks and not to credit cooperative societies - The intention of the legislature of bringing in cooperative banks into the taxation structure was mainly to bring in par with commercial banks - Since the assessee is a cooperative society and not a cooperative bank, the provisions of section 80P(4) will not have application and it is entitled to deduction u/s 80P(2)(a)(i) of the Act - the assessee society is entitled to deduction u/s. 80P(2)(a)(i) of the Act – Decided in favour of assessee.
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