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2016 (12) TMI 346 - ITAT CHENNAI

2016 (12) TMI 346 - ITAT CHENNAI - TMI - Eligibility of deduction under section 80P(2)(a)(i) - CIT(A) holding that the status of the assessee is Cooperative Society and directing the Assessing Officer to allow deduction - Held that:- For the assessment years under consideration, by following the decision of the Tribunal for the assessment years 2008-09 and 2010-11 ld. CIT(A) has directed the Assessing Officer to allow the deduction under section 80P(2)(a)(i) of the Act. The ld. DR could not cont .....

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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 [XL-35] of 1955 date 11.04.1955, the Assessing Officer should have considered the genuineness of the claim and .....

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s admissibility, genuineness and decide the issues in accordance with law after allowing sufficient opportunities of hearing to the assessee. Accordingly, the ground raised by the assessee is allowed for statistical purposes. - I T.A. No. 2089/Mds/2016, I.T.A. Nos. 2319 and 2320/Mds/2016, C.O. Nos.134 and 135/Mds/2016 - Dated:- 30-11-2016 - Shri A. Mohan Alankamony, Accountant Member and Shri Duvvuru RL Reddy, Judicial Member For The Department : Shri M.M. Bhusari, CIT For The Assessee : Shri R. .....

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tive 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 debt .....

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on the assessee on 31.08.2013. In response thereto, the assessee has furnished the details in writing and offered its explanation. In the assessment order, the Assessing Officer has observed that as per the website of the assessee, the assessee is a Scheduled Bank in the public sector in India under Regional Rural Banks Act, 1976, established on 9th March, 1977. Indeed, the assessee has obtained PAN as an Association of Persons and filing its return of income from its inception as a co-operativ .....

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gible for deduction under section 80P(2)(a)(i) of the Act. After making detailed discussion in the 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 th .....

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the orders of the Assessing Officer, the ld. DR has submitted the provisions of section 80P of the Act was amended by the Finance Act, 2006 w.e.f. 1st April, 2007 introducing sub-section (4), which laid down specifically that the provisions of section 80P 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 and therefore, the status of the assessee is a corporate entity and not eligible to claim .....

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through orders of authorities below and also perused the copies of earlier orders of the Tribunal. It is an admitted fact that for the assessment year 2007-08, the Assessing Officer has allowed the claim of deduction under section 80P(2)(a)(i) of the Act vide his order dated 19.03.2009. By order dated 28.10.2009, the ld. CIT passed order under 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 Ac .....

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hat the assessee has to be treated as a co-operative society and would be eligible to claim deduction under section 80P(2)(a)(i) of the Act and the relevant portion of the order is reproduced as under: 6. We have perused the orders and heard the rival contentions. It is not disputed that if the assessee is to be treated as a Co- operative society, then the deduction under section 80P(2) (a) (i) of the Act is available to it. The only dispute here is that assessee being a regional rural bank esta .....

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perative society and the said sections having not been overridden, it could only be treated as a co-operative society Further, relying on definition of Co-operative Bank as given in the Banking Regulation Act, 1949, assessee submits that it is neither a State Co-operative Bank nor a Central Cooperative Bank nor a Primary Cooperative Bank, and therefore, not a co-operative bank at all. Whatever that may be, there is much strength in the argument of the assessee that it is to be treated as coopera .....

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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 2010-11 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. The ld. DR could not .....

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f the ld. CIT(A). Since we have confirmed the order of the ld. CIT(A) on this issue and dismissed the appeals of the Revenue, the Cross Objections filed by the assessee become infractuous and accordingly, we dismiss both the CO s filed by the assessee. I.T.A. No. 2089/Nds/2016 10. Now, coming the appeal filed by the assessee for the assessment year 2013-14, the assessee has raised a ground that the ld. CIT(A) has declined to adjudicate the specific ground raised before him with regard to (i) flo .....

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