TMI Blog2015 (10) TMI 2437X X X X Extracts X X X X X X X X Extracts X X X X ..... hakari Sangha Niyamitha Bagalkot (2015 (1) TMI 821 - KARNATAKA HIGH COURT) relied on by the Commissioner of Income Tax (Appeals) has been set aside by the Hon'ble Supreme Court. Further, we find that the Authorized Representative of the assessee has filed, before us, the order of the Hon'ble Bombay High Court at Goa in the case of M/s. The Quepem Urban Cooperative Credit Society Ltd. (2015 (6) TMI 573 - BOMBAY HIGH COURT) which is on the same lines as that of the Hon'ble Karnataka High Court in the case of Shri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot (supra). As the assessee is not a Cooperative bank earning on exclusively banking business and as it does not possess a licence from Reserve Bank of India to earn on bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is a cooperative society registered under the Goa Cooperative Societies Act. The main object of the society was to accept the deposits and provide financial accommodation to the members of the society. According to the Assessing Officer, after insertion of clause (viia) to sec. 2(24) w.e.f. 01/04/2007, 'income' includes the profit and gains of any business of banking (including providing credit facilities) carried in by such cooperative society with its members comes within the definition of income. Therefore, assessee-cooperative society was a primary cooperative bank and not eligible for deduction under sec. 80P as claimed in view of the provisions of sec. 80P(4). 4. On appeal, Commissioner of Income Tax (Appeals) ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a Cooperative bank earning on exclusively banking business and as it does not possess a licence from Reserve Bank of India to earn on business, it is not a Co-operative bank. It is a Cooperative society which also carries on the business of lending money to its members which is covered under Section 80P(2)(a)(i) i.e. carrying on the business of banking for providing credit facilities to its members. The object of the aforesaid amendment is not to exclude the benefit extended under Section 80P(1) to such society. Therefore, Commissioner of Income Tax (Appeals) set aside the order of the Assessing Officer and allowed deduction under sec. 80P(2)(a)(i) to the assessee for ₹ 35,35,679/-. 5. Departmental Representative relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for deduction in view of the provisions of sec. sec. 80P. 8. On appeal, Commissioner of Income Tax (Appeals) has allowed the claim of the assessee by following the decision of the Hon'ble Karnataka High Court in the case of Shri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot (supra), wherein it was held that where the assessee is not a Cooperative bank earning on exclusively banking business and as it does not possess a licence from Reserve Bank of India to earn on business, it is not a Co-operative bank. It is a Cooperative society which also carries on the business of lending money to its members which is covered under Section 80P(2)(a)(i) i.e. carrying on the business of banking for providing credit facilities to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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