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TMI Blog2012 (8) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... of by this common order for the sake of convenience. 2. ITA No. 1088/Mds/2012: Brief facts are that the assessee M/s. Pandyan Grama Bank filed its return of income for the assessment year 2007-08 disclosing nil income. Subsequently, the assessee filed a revised return and the income before claiming deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961 ('the Act' for short) was shown at Rs. 7,03,54,000/-. The return was processed u/s 143(1) of the Act and the Assessing Officer has completed the scrutiny assessment and assessed the total income of the assessee at nil treating the status of the assessee as 'Association of Persons'. The scrutiny assessment order passed by the Assessing Officer was set aside by the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Rural Banks are not eligible for deduction u/s 80P of the Act. As the Board's Circular was issued subsequent to the order of the Tribunal, the Tribunal did not have the benefit of deciding the issue of deduction under section 80P(4) of the Act in unison with Circular No.6/2010 and held that, "In view of the amendment of the Act and consequential circular No.6 dated 20-09-2010 specifically re-iterating that RRBs are not eligible for deduction u/s 80P of the Act from assessment year 2007-08 onwards and circular No. 319 stands withdrawn w.e.f. assessment year 2007-08, RRBs can no longer be deemed to be a co-operative society for the purpose of Income tax Act w.e.f. assessment year 2007-08. Assessee is neither a Primary Agricultural Credit S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k or could be considered as a co-operative society. No doubt, sub-section (4) of section 80P introduced by Finance Act 2006 clearly takes a co-operative bank out of the purview of deduction available under 80P(2)(a)(i) of the Act. Thus, if the assessee is a cooperative bank, it would not be eligible for such deduction. Contention of the assessee is that in view of sections 22 and 23 of the RRB Act, 1976, it was to be treated as a co-operative 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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