TMI Blog2014 (8) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... found that the same is matching with the business activity of the cited cases then the ratio laid down can be applied. The AO is also directed to verify the aims and objects of this assessee.- Decided in favour of assessee only for statistical purpose. - ITA No.814/Ahd/2011 - - - Dated:- 28-8-2014 - SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER Appellant by : Shri B.L. Yadav, Sr.D.R., Respondent by : Shri S.N. Divetia AR ORDER PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER This is an Appeal filed by the Assessee arising from an order of the ld. CIT(Appeals)-XX, Ahmedabad, dated 13/12/2010. Grounds raised are hereby decided as follows: 1. The Ld. CIT(A) has grossly erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not fall within the meaning of Co-operative Bank as defined in part V of the Banking Regulation Act, 1949, Sub Section(4) of section 80P will not apply in its case. Thus the CBDT was not given any direction as to the fact whether deduction u/s.80P shall be available to the assessee. It is seen that as per definition of the Co.Op. Bank mention in clause (cci) of section 56(5) of Part- V of the Bank Regulation Act, 1949 reads as under: (cci) Co-operative Bank means a state Co-operative Society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank: (ccii) co-operative credit society means a co-operative society, the primary object of which is to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-operative agricultural and rural development bank. This view is also clarified by Central Board of Direct Taxes vide its clarification No. 133/06/2007-TPL dated 9th May 2007. Further, the distinction between co-operative society under Banking Regulations Act, 1949 and co-operative society registered under State Co-operative Societies Act, Viz. Karnataka State Co-operative Societies Act, 1959 is vividly brought out in the ITAT Order, Bangalore Bench in the case of ACIT Vs Bangalore Commercial Transport Credit Co-operative Society Ltd. in ITA No.1069/Bang/2010 for AY 2007-08 dated 08-04-2011 as under: Nature Co-operative Society registered under Banking Regulation Act,1949 Co-operative Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RBI has the power to inspect accounts and overall functioning of the bank. Registrar has the power to inspect accounts and overall functioning of the bank. Part V Part V of the banking Regulation Act is applicable to co-operative banks. Part V of the Banking Regulation Act is not applicable to co-operative banks. Use of words The word bank , banker , banking can be used by co-operative bank. The word bank , banker , banking cannot be used by a co-operative society. 10.5 Thus, taking into account of all the facts and the issue we are in conformity with the order of the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction under the said section shall not be allowable to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. For the purpose of the said sub-section, cooperative bank shall have the meaning assigned to it in part V of the Banking Regulation Act, 1949. 3. In part V of the Banking Regulation Act, Co-operative Bank means a State Co-operative bank, a Central Co-operative Bank and a primary Co-operative bank. 4. Thus, if the Delhi Co op Urban T C Society Ltd. does not fall within the meaning of Co-operative Bank as defined in part V of the Banking Regulation Act, 1949, subsection (4) of section 80P will not apply in this case. 5. The issues with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 4.3 On perusal of the orders of authorities below, it is evident that they did not have the benefit of these precedents. Due to this reason, we are restoring this issue back to the file of the AO to be decided de novo after ascertaining that the facts of this assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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