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2015 (7) TMI 205 - AT - Income TaxRevision u/s 263 - as per CIT(A) order of AO was erroneous and prejudicial to the interests of the Revenue for the reason that after the introduction of section 80P(4) deduction was not available to co-operative banks - Held that:- The Hon’ble Karnataka High Court in the case of CIT Vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot, [2015 (1) TMI 821 - KARNATAKA HIGH COURT] has held that a credit co-operative society giving credit to its members is not hit by the provisions of Sec.80P(4) of the Act as it does not possess a licence from RBI to carry on business and is not a cooperative bank. The object of introducing Sec.80P(4) of the Act was not to exclude the benefit extended u/s.80P(1) to co-operative society carrying on the business of providing credit facilities to its members. Thus the assessee is entitled to deduction u/s. 80P(2)(a)(i) of the Act and set aside the order of the ld. CIT to this extent. - Decided in favour of assessee. Disallowance u/s. 40(a)(ia) - CIT has only directed the AO to examine whether the provisions can be applied or not. Admittedly, there was no enquiry by the AO on this aspect while concluding the original assessment, thereby rendering the order of the AO erroneous and prejudicial to the interests of the Revenue to this extent. We are therefore of the view that the order of the CIT insofar he directed the AO to make a fresh assessment in accordance with the law is correct and calls for no interference.- Decided against assessee.
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