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2018 (12) TMI 1672 - AT - Income TaxDeduction u/s 80P - AR submitted that the assessee is not having the banking licence and therefore is entitled to the benefit of Section 80P - HELD THAT:- As per Hon’ble Supreme Court in Citizen Cooperative Society [2017 (8) TMI 536 - SUPREME COURT] it is incumbent upon any society / bank to have the licence from RBI for the purposes of doing the business of banking. In the case before the Hon’ble Supreme Court, the assessee had obtained a certificate from the RBI clarifying that the assessee’s business does not fall under the category of cooperative bank. In our view, it will be equitable in the interest of justice if the matter is remanded back to the file of the AO with a direction to verify the activities of the assessee and further the assessee is directed to furnish the certificate / circular from the RBI to the effect that the activity / business functions of the assessee do not attract the Banking Regulations Act and hence do not require any licence from RBI. Needless to say if the assessee furnishes the certificate from the RBI clarifying that the activity of the assessee do not fall under the activity of cooperative bank then the AO shall allow the claim of deduction u/s.80P(4) of the Act. Whether the assessee is a cooperative society or not? - HELD THAT:- In many cases, the Tribunal has held that the stand of the Revenue that a Souharda is a cooperative but not a co operative society under the ACT and hence, not eligible for deduction u/s.80P. In a recent order in the matter of M/s. Udaya Souharda Credit Co operative Society Ltd [2018 (8) TMI 1063 - ITAT BANGALORE] it was noted that Karnataka State has notified Karnataka Co – Operative Societies Act, 1959 as well as the Karnataka Souharda Sahakari Act, 1997 and both Acts are in force. Therefore, conversion from one into another is possible. Thereafter the Tribunal held that the deduction u/s.80P can only be applied to a cooperative society registered under the Karnataka Co- Operative Societies Act, 1959 and thereafter the matter was restored back to the AO for fresh decision after making necessary enquiry and investigation. - Decided in favour of assessee for statistical purpose
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