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2015 (3) TMI 1346 - AT - Income TaxDisallowance of deduction available to Co-operative society u/s 80P - assessee collecting deposits from members by way of corpus funds and other deposits - HELD THAT:- As in the case of Jafari Momin Vikash Co-op. Credit Society Ltd [2014 (2) TMI 28 - GUJARAT HIGH COURT] sub-section(4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift & Credit Society Ltd. was under consideration. Circular clarified that the said entity not being a co-operative bank, section 80P(4) of the Act would not apply to it. Revenue's contention cannot be entertained 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, 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. In the result, Tax Appeals are dismissed. Referring to SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA BAGALKOT [2015 (1) TMI 821 - KARNATAKA HIGH COURT] section 80P (4) was not applicable to cooperative societies and was restricted only to cooperative Banks which had got licence to do banking business from the RBI. As the assessee dealing only with its members, so it is to be considered a cooperative society only and not a bank. Considering the facts and circumstances of the case, we are reversing the order of the FAA. Effective ground of appeal, filed by the assessee, is decided in its favour.
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