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TMI Blog2017 (2) TMI 1015X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is that the Commissioner of Income Tax (Appeals) erred in allowing deduction to the assessee under sec. 80P(2)(a)(i) of the Income Tax Act, 1961. 3. The facts of the case, in brief, are that the assessee filed its return of income at NIL after claiming deduction under sec. 80P(2)(a)(i) of the Act for Rs. 37,83,918/- for the Assessment Year 2012-13 on 29/09/2012. It was claimed that the society is entitled to deduction under sec. 80P(2)(a)(i) as it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members. However, the claim of the assessee for deduction under sec. 80P(2)(a)(i) was rejected by the Assessing Officer in the order passed under sec. 143(3) of the Act on the ground tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,918/- under section 80P(2)(a)(i) of the Income Tax Act." 5. None appeared on behalf of the assessee in spite of notice being issued to the assessee. 6. On the other hand, Departmental Representative supported the order of the Assessing Officer. 7. We find that the issue is now covered by the decision of the Hon'ble Karnataka High Court in favour of the assessee in the case of CIT Vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot, in ITA No.5006/2013 dated 05-02-2014, which was followed in the cases of General Insurance Employees Co-operative Credit Society Ltd. and in the case of Vasavi Multipurpose Souharda Sahakari Niyamitha, wherein the Hon'ble High Court has clearly held that a co-operative society registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s members. The object of the aforesaid amendment is not to exclude the benefit extended under section 80P(1) to such society. In the instant case, when the status of the assessee is a co-operative society and is not a co-operative bank, the order passed by the Assessing authority extending the benefit of exemption from payment of tax under section 80P(2)(a)(i) of the Act is correct". Respectfully following the same, we uphold that the assessee is a cooperative society and not a cooperative bank and, therefore, entitled to deduction under sec. 80P of the Act. We, therefore, do not find any good and justifiable reason to interfere with the order of the Commissioner of Income Tax (Appeals), which is hereby confirmed and the ground of appeal o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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