TMI Blog2014 (2) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Appeal No. 1149 of 2013 - - - Dated:- 17-1-2014 - Akil Kureshi And Sonia Gokani,JJ. ORDER (Per : Honourable Mr. Justice Akil Kureshi) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad [ Tribunal for short] in I.T.A No. 578/Ahd/2010 dated 10th May 2013, raising following questions for our consideration : [ A] Whether in law and on facts, the ITAT is justified in holding the assessee entitled to claim deduction under section 80P (2) ? [B] Whether in law and on facts, the ITAT is justified in holding that the assessee is not covered within the purview of Section 80P (4) of the Act ? The issue pertains to deduction under section 80P (2) of the Act. Revenue contended that by vir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness of banking or providing credit facilities to its members the whole of the amount of profits and gains of business attributable to any one or more of such activities. Revenue, however, contends that by virtue of newly amended subsection( 4) of section 80P inserted with effect from 1.4.2007 by Finance Act, 2006, section 80P would not apply to the respondent assessee. Section 80P(4) in the present form refers as under: ( 4) The provisions of this section shall not apply in relation to any cooperative bank other than a primary agricultural credit society or a primary cooperative agricultural and rural development bank. ExplanationFor the purposes of this subsection, ( a) cooperative bank and primary agricultural credit society sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nks other than those mentioned therein were meant to be excluded for the purpose of deduction under section 80P, a question would arise why then Legislature specified primary agricultural credit societies along with primary cooperative agricultural and rural development banks for exclusion from such exclusion and in other words, continued to hold such entity as eligible for deduction. However, the issue has been considerably simplified by virtue of CBDT circular No.133 of 2007 dated 9.5.2007. Circular provides as under: Subject: Clarification regarding admissibly of deduction under section 80P of the IncomeTax Act, 1961. 1. Please refer to your letter no.DCUS/30688/2007, dated 28.03.2007 addressed to Chairman, Central Board of Direct Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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