TMI Blog2016 (12) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... pectfully following the above decision of the Coordinate Bench of the Tribunal, we find no reason to interfere with the orders of the ld. CIT(A) on this issue and thus, the ground raised by the Revenue is dismissed for both the assessment years. Floating provision for NPA, loss on redemption of securities and bad debts written off claim - Held that:- On perusal of the assessment order, we find that even though the assessee has not made claim of deduction in the return of income, the Department has taken the benefit of assessee’s ignorance and rejected the claim made during the course of assessment proceedings. If the assessee is legally entitled to claim a deduction, in view of the directions given by the CBDT vide its Circular No. 14 [X ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue has raised the common issue for both the assessment years that the ld. CIT(A) erred in holding that the status of the assessee is Cooperative Society and directing the Assessing Officer to allow deduction under section 80P(2)(a)(i) of the Act. On the other hand, the assessee, by means of Cross Objections supported the orders of the ld. CIT(A) on this issue. 2. The assessee also filed an appeal against the order of the ld. CIT(A) 3, Madurai for the assessment year 2013-14, wherein, the ld. CIT(A) has erred in declining to adjudicate the issues with regard to floating provision for NPA, loss on redemption of securities and bad debts written off, since there was no tax implication as deduction under section 80P2(a)(i) of the Act has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order and distinguishing the RRB Act and Income Tax Act, the Assessing Officer has concluded the status of the assessee as a company and the deduction claimed by the assessee of ₹.41,77,10,510/- under section 80P of the Act was disallowed and completed the assessment under section 143(3) of the Act. 4. The assessee carried the matter in appeal before the ld. CIT(A). By following the order of the Tribunal for the assessment years 2008-09 and 2010-11 in I.T.A. Nos. 572 595/Mds/2014 vide order dated 25.08.2014, the ld. CIT(A) has directed the Assessing Officer to allow the deduction under section 80P(2)(a)(i) of the Act. On similar facts and circumstances in an identical issue, the ld. CIT(A) has given similar findings f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 263 of the Act quashing the assessment order on the ground that in view of introducing sub-section (4) to section 80P of the Act as per Finance Act, 2006 that the provisions of section 80P of the Act will not apply to any Co-operative Bank other than a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank, the deduction allowed to the assessee under section 80P(2)(a)(i) of the Act should be withdrawn. Against the order of the ld. CIT, by considering the RRB Act and Income Tax Act, the Tribunal vide its order dated 13.08.2010 in I.T.A. No.1941/Mds/2010, on merits, gave a concurrent findings that the assessee has to be treated as a co-operative society and would be eligible to claim d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be eligible under section 80P(2)(a)(i) of the Act........... 7. By following the above decision of the Tribunal dated 13.08.2010, in subsequent assessment years, the Tribunal has allowed the assessee to claim deduction under section 80P(2)(a)(i) of the Act. [I.T.A. Nos. 1088, 1091 1092/Mds/2012 for the assessment years 2007-08, 2008-09 2009-10 vide order dated 23.08.2012; I.T.A. Nos. 572 595/Mds/2014 for the assessment years 2008-09 and 2010-11 vide order dated 25.08.2014; I.T.A. No. 1831/Mds/2015 for the assessment year 2011-12 vide order dated 18.03.2016] 8. For the assessment years under consideration, by following the decision of the Tribunal in I.T.A. Nos. 572 595/Mds/2014 for the assessment years 2008-09 and 2010- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and rejected the claim made during the course of assessment proceedings. If the assessee is legally entitled to claim a deduction, in view of the directions given by the CBDT vide its Circular No. 14 [XL-35] of 1955 date 11.04.1955, the Assessing Officer should have considered the genuineness of the claim and granted relief to the assessee which he is legally entitled to. However, in this case, during the course of assessment proceedings, the assessee has made the claims, which was not originally claimed in the return of income, but, the Assessing Officer has rejected the claim of the assessee since the assessee has not made such claim in the return of income. Under these circumstances, we direct the Assessing Officer to consider the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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