TMI Blog2014 (4) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellate stage on the claim of deduction not made in the return of income is justified – thus, CIT(A) is justified in directing the AO to allow the deduction claimed by the assessee u/s 80P of the Act on the reason that the assessee, a cooperative credit society is not a bank for the purposes of section 80P(4) of the Act – the order of the CIT(A) upheld – Decided against Revenue. - ITA Nos. 3223/Mum/2011 & 505/Mum/2012 - - - Dated:- 28-3-2014 - Shri P. M. Jagtap And Dr. S. T. M. Pavalan,JJ. For the Petitioner : Dr. P. Daniel For the Respondent : Smt. Neerja Pradhan ORDER Per Dr. S. T. M. Pavalan, JM: These appeals filed by the Revenue are directed against two separate orders of the Ld.CIT(A)-33, Mumbai dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee by invoking section 80P(4) the Act. On appeal against the said orders of the AO, the Ld.CIT(A) held that the assessee is entitled for exemption u/s 80P of the Act. Aggrieved by the impugned orders, the Revenue is in appeal before us. 4. Having heard both the sides and perused the material on record, it is pertinent to mention that the only issue arising out of both the appeals relate to the allowability of the exemption/deduction claimed by the assessee u/s 80P of the Income Tax Act. The allowability of exemption of the said income depends on whether the assessee/cooperative credit society is a co-operative bank or not for the purposes of section 80P(4) of the Act since according to the said provision, deduction under section 80P sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Therefore, cooperative banks mentioned in the said subsection indicates only the State, Central and Primary Co-operative Banks only. 4.3 Moreover, for commencing a banking business by the co-operative society, due license has to be obtained from the Reserve Bank of India and in the assessee s case, there is no such license obtained for commencing any banking business. The mere fact that the assessee has been providing credit facilities to its members and thereby earns interest and dividend cannot make the society into a bank for the purposes of section 80P(4) of the Act. If the intention of the legislature was not to grant deduction to cooperative societies carrying on the business of providing credit facilities to its members, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in return of income. The Ho ble Bombay High Court while deciding so, has considered the judgment of the Hon ble Apex Court in the case of Goetze India Ltd. (supra). In view of that matter, the Ld.CIT(A) giving relief to the assessee at the appellate stage on the claim of deduction not made in the return of income is justified. 4.6 Considering the entire facts and position of law, we are of the considered opinion that the Ld.CIT(A) is justified in directing the AO to allow the deduction claimed by the assessee u/s 80P of the Act on the reason that the assessee, a cooperative credit society is not a bank for the purposes of section 80P(4) of the Act. Thus the orders of the Ld.CIT(A) dated 11.02.2011 and 29.11.2011 for the Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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