TMI Blog2015 (12) TMI 1648X X X X Extracts X X X X X X X X Extracts X X X X ..... iety 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. - Decided in favour of assessee - ITA No. 1149/Bang/2015 - - - Dated:- 9-12-2015 - Vijay Pal Rao (Judicial Member) And Inturi Rama Rao (Accountant Member) For the Appellant : Radheshyam Narayan Mundra, CA. For the Respondent : Dr. P. K. Srihari, Addl. CIT(DR). ORDER Vijay Pal Rao (Judicial Member) This appeal by the revenue is directed against the order dated 11/5/2015 of the CIT(A) for the assessment year 2012-13. 2. The revenue has raised the following grounds: 1. The learned CIT(Appeals) erred in law and on facts in not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee filed return of income on 28/9/2012 after claiming deduction u/s 80P(2)(a)(i). The AO, while passing the assessment order u/s 143(3) on 22/10/2014, denied deduction u/s 80P on the ground that the assessee is a co-operative bank and hence not entitled to claim deduction by virtue of sec.80P(4). 3. On appeal, the CIT(A) has allowed the claim of the assessee by following the judgment of the Hon ble jurisdictional High Court in the case of CIT vs. Sri Biluru Gurubasappa Pattina Sahakari Sangha Niyamita (369 ITR 86). 4. We have heard the learned DR as well as the learned AR of the assessee and considered the relevant material on record. At the outset, we note that an identical issue has been considered by the co-ordinate benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural and rural development bank. The legislature did not want to deny the said benefits to a primary agricultural credit society or a primary co-operative agricultural and rural development bank. They did not want to extend the said benefit to a co-operative bank which is exclusively carrying on banking business i.e the purpose of this amendment. Therefore, as the assessee is not a Co-operative bank carrying on exclusively banking business and as it does no possess a licence from Reserve Bank of India to carry on business, it is not a co-operative bank. It is a co-operative society which also carries on the business of lending money to its members which is covered under section 80P(2)(a)(i) i.e carrying on the business of banking for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamitha ITA NO.505/2013 dated 7-06-2014, supra. Therefore, in view of the foregoing discussion and respectfully following the aforesaid decisions of the jurisdictional High Court of Karnataka. It is held that the appellant case is not covered by section 80P(4) as it is not a co-operative bank and therefore, it is entitled to the exemption u/s 80P(2)(a)(i) of the IT Act . 6. We have considered rival submissions and perused the material available on record. There is no dispute that the assessee is a co-operative credit society registered under the Karnataka State Cooperative Societies Acct, 1959. The income earned by the assessee during the year is from the activ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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