TMI Blog2015 (10) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... order of CIT(A)-XX, Ahmedabad dated 09.12.2010 for A.Y. 2007-08. 2. The relevant facts as culled out from the material on record are as under. 3. Assessee is stated to be a Co-operative Society engaged in the business of providing credit facilities to its Members. Assessee filed its return of income for A.Y. 2007-08 on 02.11.2007 declaring total income at Rs. Nil. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 24.12.2009 and the total income was determined at ₹ 5,35,780/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 09.12.2010 dismissed the appeal of the Assessee. Aggrieved by the order of ld. CIT(A), Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the outset, ld. A.R. submitted that though the Assessee has raised various grounds but the solitary issue is with respect to allowing deduction u/s. 80P of the Act. 5. During the course of assessment proceedings and on the basis of scrutiny of the accounts, A.O concluded that since the Assessee was carrying out business of banking it was not eligible for deduction u/s. 80P(2) of the Act in view of the amendment made to sub-section 4 in Section 80P with effect from 01.04.2007 as he was of the view that after the amendment the benefit of Section 80P was restricted only to Primary Agricultural Credit Society and Primary Co-op. Agricultural and Rural Development Bank. According to the A.O, since the Assessee was Co-op. Bank, it was not el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been registered under any Central Act for the time being in force relating to the multi state co-operative societies for the time being in force, 4.3(i) In view of the above definition, it is clear that the appellant comes under the definition of Co-operative Bank. Hence, section 80P(4) is clearly applicable to the appellant. In view of the above, the action of the AO in denying the deduction u/s,80P to the appellant is justified. The same is, hence, confirmed. 6. Aggrieved by the aforesaid order of ld. CIT(A), Assessee is now in appeal before us. 7. Before us, ld. A.R. submitted that Assessee is a Co-op. Credit Society and not a bank and the exclusion provided by sub section 4 to 80P would not be applicable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outset the ld. A.R. submitted that the issue in the present case is directly covered by the decision of Hon ble Gujarat High Court in the case of CIT vs. Surat Vankar Sahakari Sangh Ltd. (Tax Appeal No. 1150 of 2013 order dated 17.01.2014. She also placed on record the copy of the aforesaid decision. She further submitted that since Assessee is not a Credit Co-Op. Bank but a Credit Co-Op. Society, exclusion clause of sub-section(4) of Section 80P would not be applicable to the Assessee. She therefore submitted that following the aforesaid decision of Hon ble High Court, the issue needs to be decided in favour of the Assessee. The ld. D.R. on the other hand supported the order of A.O and ld. CIT(A). 7. We have heard the rival submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation, in our opinion, the question of law could be stated to have arisen. When, as contended by the assessee, by virtue of 1 sub-section(4) only co-operative banks 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 co-operative 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 deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o it. In view of such clarification, we cannot entertain the Revenues contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not co-operative banks. In the present case, respondent assessee is admittedly not a credit co-operative bank but a credit co-operative society. Exclusion clause of sub-section(4) of section 80P, therefore, would not apply.' In the result, Tax Appeals are dismissed. 8. In the present case, Revenue has not placed any material on record to demonstrate that Assessee is a co-operative Bank and not a credit co-operative society. In such a situation, we are of the view the issue in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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