TMI Blog2015 (7) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... ade under various Acts for both the organizations are varied. The sub-section 4 to section 80P is applicable only to co-operative banks and not to credit co-operative societies. Gujarat High Court in the case of CIT Vs. Jafari Momin Vikas Co-op. Credit Society Ltd.,(2014 (2) TMI 28 - GUJARAT HIGH COURT ) wherein the Hon’ble High Court after taking into consideration the CBDT Circular No.133/07 has held that sub-section 4 section 80P will not apply to assessee which is not a co-operative bank The Revenue has tried to establish that the assessee although a credit co-operative society is carrying banking business and is thus not eligible. In our opinion, the assessee is not a co-operative bank. The activities in the nature of accepting deposits, advancing loans etc., carried on by the assessee are confined to its members only and that too in a particular geographical area. The activities of the assessee are not regulated by the RBI or the provisions of the Banking Regulation Act. Since the assessee is a cooperative society and not a cooperative bank, the provisions of section 80P(4) will not have application and it is entitled to deduction u/s 80P(2)(a)(i) of the Act – thus, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2011, the assessee preferred an appeal before the CIT(Appeals). The CIT(Appeals) followed the order of the Bangalore Bench of the Tribunal in the case of ACIT Vs. M/s.Balgalore Commercial Transport Credit Co-operative Society Ltd., in ITA No.1069/Bang/2010 relevant to the AY.2007-08 decided on 08-04-2011 and allowed the appeal of the assessee. Aggrieved against the order of the CIT(Appeals), the Revenue has come in appeal before the Tribunal. 3. Shri S.Dasgupta, appearing on behalf of the Revenue vehemently opposed the order of the CIT(Appeals) and submitted that earlier the name of the assessee was Veerakeralam Primary Agricultural Co-operative Credit Society and after the amendment to Section 80P by insertion of sub-section 4 by the Finance Act, 2006, w.e.f. 01-04-2007, the assessee changed its name to Veerakeralam Primary Agricultural Co-operative Credit Society. However, the nature of activities and business of the assessee remains the same. The ld.DR pointed out that, in letter dt.08-11-2012 submitted by the assessee before Assessing Officer, the assessee has admitted the fact that the main source of income of the assessee is from the business of Banking. In view of the na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., in ITA No.174/Mds/2013 decided on 23-08-2013. The ld.AR apart from the above decision of the Tribunal also placed reliance on the recent judgment of the Hon ble Gujarat High Court in the case of CIT Vs. Jafari Momin Vikas Co-op. Credit Society Ltd., decided on 15-01-2014 reported as 2014(2) TMI 28. 5. We have heard the submissions made by the representatives of both the sides. We have also perused the orders of the authorities below as well as the decisions on which the ld.AR has placed reliance. The assessee is an agricultural cooperative credit society registered under the Tamil Nadu Cooperative Societies Act, 1961. The assessee-society was established in the year 1968 and the members of the society are agriculturists. The primary activity of the society is accepting deposits from its members and advancing loans to its members. The assessee has been enjoying the benefit of deduction u/s.80P till the amendment was brought in by the Finance Act, 2006 vide which sub-clause 4 was inserted in section 80P. After the amendment, the benefit of 80P was denied to the co-operative banks. The sub-section 4 of section 80P is re-produced herein below: (4) the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of the Hon ble Gujarat High Court in the case of CIT Vs. Jafari Momin Vikas Co-op. Credit Society Ltd.,(supra) wherein the Hon ble High Court after taking into consideration the CBDT Circular No.133/07 has held that sub-section 4 section 80P will not apply to assessee which is not a co-operative bank. The relevant extract of the order of the Hon ble High Court is reproduced herein below: 5. Assessing Officer held that by virtue of section 80P(4), the respondent assessee would not be entitled to benefits of deduction under section 80P. CIT(Appeals) as well as the Tribunal reversed the decision of the Assessing Officer on the premise that the respondent assessee not being a bank, exclusion provided in sub-section(4) of section 80P would not apply. This, irrespective of the fact that the respondent would not fall within the expression primary agricultural credit society. 6. Had this been the plain statutory provisions under consideration in isolation, in our opinion, the question of law could be stated to have arisen. When, as contended by the assessee, by virtue of subsection(4) only co-operative banks other than those mentioned therein were meant to be excluded for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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