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2014 (11) TMI 148 - HC - Income TaxInterim stay petition - Appeal pending before CIT(A) – Prima facie case for stay - CBDT instruction No.1914 dated 02.12.1993 not considered - Held that:- Assessee contended that with effect from 01.04.2007, the benefit of deduction available to certain co-operative banks were withdrawn by insertion of new sub-section(4) to provide that the provisions of this section will not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank – assessee submitted that it is a co-operative credit society, providing credit facilities to its members and not a Bank under Banking Regulation Act - It does not have license to act as Bank and the object of society is to help its members only and hence deduction under Section 80P(2)(a)(i) cannot be denied – assessee in the stay petition has specifically raised that the decision of the Hon'ble Gujarat High Court is fully in their favour - Therefore, they have raised the issue to establish prima facie case - they are not doing banking activities and they do not fall within the definition of banking as defined under Section 5(b) of the Banking Regulation Act, nor do they possess license u/s 22 of the said Act, which is the mandatory requirement - As per the clarification issued by the CBDT dated 01.12.2009, detailed instructions have been given as to how and under what circumstances, stay of demand could be granted - the guidelines are binding upon the Officer, while considering the application for grant of stay - the assessee has made out a case for grant of interim stay till the appeal is heard, disposed of by the CIT(A) – Stay granted.
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