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2018 (8) TMI 1919 - AT - Income TaxDeduction u/s 80P - assessee carries on the banking business and other business in the name of a credit cooperative society - AO has disallowed the claim on the ground that deduction allowable u/s 80P(2)(a) (i) in case of cooperative society engaged in the business of banking has been withdrawn from the A.Y. 2007-08 by inserting sub-section(4) of section 80P - HELD THAT:- If one has to go by the definition of co-opertive bank, the assessee does not get covered thereby. That is also a matter of common knowledge that in order to do the business of a co-operative bank, it is imperative to have a license from the Reserve Bank of India which the assessee does not possess. In the present case, before me also the assessee co-operative society is not licensed from the Reserve Bank of India to act as co-operative bank. Hence, as per the ratio emanating from the aforesaid Hon’ble Apex Court in the case of the Citizen Co-operative Society Ltd [2017 (8) TMI 536 - SUPREME COURT] the assessee is not affected by the provisions of section 80P (4). Accordingly, confirm the order of the ld. Commissioner of Income Tax (Appeals) and hold that the assessee is entitled to deduction u/s 80P(2)(a)(i).
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