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2018 (3) TMI 806 - AT - Income TaxDeduction u/s 80P disallowed - assessee is a Cooperative Society - eligibility criteria - Held that:- The claim of assessee under section 80P(2)(a)(i) would be available to the assessee and the same could not have been denied to the assessee by insertion of Section 80P(4) of the I.T. Act. The Hon’ble Gujarat High Court in the case of CIT v. Jafari Momin Vikas Co-op Credit Society Ltd. [2014 (2) TMI 28 - GUJARAT HIGH COURT] held that Section 80P(4) of the I.T. Act will not apply to assessee which is not a Cooperative Bank. The assessee being a Cooperative Society as per overriding provisions contained in Section 22 of the RRB Act, 1976, there is no bar for assessee to claim exemption under these provisions. Considering the above discussion in the light of various provisions contained under the Regional Rural Bank Act, 1976, we are of the view that assessee is entitled for exemption/deduction under section 80P(2)(a)(i) of the I.T. Act. The orders of the authorities below are, therefore, liable to be set aside. - Decided in favour of assessee. Section 80P deduction claim - issue belatedly raised before A.O. through a non-est return - Held that:- In the present case, the assessee has raised the issue of claim of exemption under section 80P before A.O. which have been discussed and considered by the A.O. Therefore, there was no bar on the powers of the ld. CIT(A) to consider the same issue even if such issue would not have raised before A.O. Ld. CIT(A) was entitled to consider this issue at the First Appellate Stage. There is no merit in the cross objection and the same is liable to be dismissed. Orders of the authorities below are set aside and matter is restored to the A.O. to re-frame the assessment in accordance with law by granting benefit to the assessee under section 80P(2)(a)(i) of the I.T. Act because the A.O. has not examined the conditions of above provisions. The A.O. shall give reasonable, sufficient opportunity of being heard to the assessee.
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