TMI Blog2016 (3) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the business of banking and, therefore, exempt under section 80P(2)(a)(i) – Decided against the Revenue. - ITA No.1295/Hyd/2015 - - - Dated:- 4-3-2016 - Smt. P.Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member Appellant by : Shri D.L.Narasimha Rao Respondent by : Shri D.Srinivas DR ORDER S.Rifaur Rahman, Accountant Member : This appeal filed by the assessee is directed against the order of the Commissioner of Income-tax(Appeals) 7, Hyderabad dated 15.9.2015 for the assessment year 2012-13. 2. Though as many as eight grounds have been urged, the only effective grievance of the assessee in this appeal relates to disallowance of the assessee s claim for exemption under S.80P(2)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggrieved by the order of the CIT(A), assessee is in second appeal before us. 6. We have heard both sides and perused the orders of the Revenue authorities. Though the order of the Tribunal dated 3.7.2012 for assessment years 2007-08 and 2008-09 (ITA Nos.1003 1004/Hyd/2011) in assessee s own case on the issue of assessee s eligibility for deduction under S.80P(2)(a)(i) is against the assessee, we find that the said decision of the Tribunal has been rendered without taking into account the decision of the Andhra Pradesh High Court in the case of CIT V/s. A.P. State Cooperative Bank Ltd.(2011) (336 ITR 516), which is in favour of the assessee. It is also noticed that the coordinate bench of this Tribunal in its subsequent decision in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent. of its working capital, the excess could be utilized in the business of the society with the sanction of the Registrar of Cooperative Societies. Further, when a society is prohibited by its bye-laws from borrowing either from its members or others, the whole of its reserve fund may be utilized in its business. If a cooperative bank derives income by lending money to its members, it being business of banking, is eligible for deduction. The statutory liquidity ratio, cash reserve or reserve fund required to be maintained by a scheduled bank or a cooperative bank under the provisions of the Reserve Bank of India Act, 193 4, or the Banking Regulation Act, 1949, are all activities which are part of the business of banking. If section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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