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2014 (8) TMI 974 - AT - Income TaxAdmissibly of deduction under section 80P - as per AO the assessee which was a co-operative society carrying on banking business was not entitled to deduction under section 80P(2)(a)(i) of the Act - Held that:- The provisions of section 80P(4) has got its application only to co-operative banks. Section 80P(4) does not define the word 'co-operative society'. The existing section 80P(2)(a)(i) shall be applicable to a co-operative society carrying on credit facility to its members. This view is clarified by the Central Board of Direct Taxes vide its clarification No. 133/06/2007-TPL, dated May 9, 2007. Sub- section (4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by the Central Board of Direct Taxes, Delhi Co-op. Urban Thrift and Credit Society Ltd. was under consideration. The circular clarified that the said entity not being a cooperative bank, section 80P(4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenue's contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not co-operative banks. In the present case, the respondent-assessee is admittedly not a credit co-operative bank but a credit co-operative society. Exclusion clause of sub-section (4) of section 80P, therefore, would not apply. See The Asst. Commissioner of Income Tax Versus M/s Bangalore Commercial Transport Credit Co-operative Society Ltd.[2011 (4) TMI 1222 - ITAT BANGALORE]. The assessee is a co-operative society, engaged in providing credit facilities to its members - Decided in favour of assesse.
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