TMI Blog2018 (12) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... ety Ltd. (supra). Since the impugned order of the learned CIT (Appeals) has been set aside and the matter restored to the file of the Assessing Officer for re-examination and adjudication, we refrain from adjudicating the issues / grounds raised by the assessee on merits. - Revenue’s appeal allowed for statistical purposes. - I.T. A. No.1127/Bang/2018 - - - Dated:- 13-12-2018 - Shri N. V. Vasudevan, Vice President And Shri Jason P Boaz, Accountant Member For the Appellant : Dr. P. V. Pradeep Kumar, Addl. CIT For the Respondent : Smt. Soumya, Advocate ORDER PER SHRI JASON P BOAZ, A.M. : This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-10, Bangalore dt.22.01.2018 for the Assessment Year 2014-15. 2.1 Briefly stated, the facts of the case relevant for disposal of this appeal, as borne out from the orders of the authorities below, are that the assessee claimed deduction under Section 80P(2)(a)(i) of the Act. The Assessing Officer rejected the assessee's claim for the reason that the primary / principal business of the assessee is transacting in banking business, therefore the assessee is a primary co- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) of the Act to the co-operative society carrying on the business of baking, when the Hon'ble Supreme Court in its latest decision delivered on 08-08-2017 in Civil Appeal No. 10245 of 2017 in the case of The Citizen Co-operative Society Ltd. Vs. ACIT, Hyderabad has denied deduction u/s 80P(2) to the co-operative societies engaged in banking activities ? 5. Whether on the facts and circumstances of the case, the CIT(A) is justified in law in directing the AO to aliow deduction of the enhanced profit of ₹ 30,000/- on account of foreign tour expenses; when the same has been correctly added by the AO ? 6. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored. 7. The appellant craves leave to add, alter, amend and/or delete any of the grounds mentioned above. 4. The learned Departmental Representative for Revenue, in the course of hearing before us, raised serious objections questioning the very basis of the assessee's entitlement for deduction under Section 80P of the Act on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd arguments put forth, they all relate to the assessee's claim of deduction under Section 80P(2) of the Act. From a perusal of the material before us, we find that a co-ordinate bench of this Tribunal in the case of Udaya Souharda Credit Co-operative Society Ltd. in order in ITA No.2831/Bang/2017 dt.17.8.2018 has considered and addressed the identical issue and restored the matter to the file of the Assessing Officer to re-examine all aspects of the assessee's claims for deduction under Section 80P(2) of the Act for adjudication by way of a reasoned and speaking order in the light of observations made and directions issued at paras 7 to 13 thereof; which are extracted hereunder :- 7. Having carefully examined the orders of authroites below in the light of rival submissions, we find that while adjudicating the issue of claim of deduction under section 80P(2) of the Act, the AO confined himself to the claim of entitlement and has denied the same having observed that the assessee was engaged in transacting in banking business and thus it is a primary co-operative bank and does not form the second category of co-operative credit societies. When the matter travelled to CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... societies are defined in clause 2(c) and 2(g) which are extracted hereunder for the sake of reference: (e) Co-operative means a co-operative including a Co-operative bank doing the business of banking registered or deemed to be registered under section 5 and which ahs the words Souharda Sahakari in its name. .. (g) Co-operative Society means a Co-operative society registered under the Karnataka Cooperative Societies Act, 1959 (Karnataka Act 11 of 1959); 10. Section 4 of Souharda Sahakari Act deal with the formation of co-operatives and its members and as per section 4(2) clause b, co-operative societies can be converted into cooperative by passing a resolution and once it is converted, the registration under the Societies Act shall be cancelled by the Registrar w.e.f. the date of certificate of registration given under Souharda Act. Relevant provisions of section 6 of Souharda Act is extracted hereunder for the sake of reference: 6. Certificate of registration.- (1) Where a Co-operative is registered or deemed to be registered, the certificate of registration duly signed and sealed by the Registrar shall be conclusive evidence that the Co-operative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngalore. 13. We have also carefully perused the cause title in the assessment order and in the cause title of the assessment order, we find that assessment order was passed in the name of Udaya Souharda Credit Co-operative Society Ltd., whereas no certificate of registration was placed before us in the name of Udaya Souhardha Credit Co-operative Society ltd. Therefore, we are unable to understand how the assessee can claim it to be the co-operative society in the absence of proper registration under the Karnataka Co-operative Societies Act. Creation of Co-operative Society under the co-operative societies Act is doubtful. Thus the claim of deduction under section 80P cannot be allowed. As per the provisions of section 80P of the Act, deduction can only be allowed to the co-operative societies registered under the cooperative societies Act. Without a proper registration under co-operative societies Act, nobody can claim it to be co-operative society as the activities of the co-operative societies are to be controlled under the co-operative societies Act through Registrar of the Cooperative Societies. Since all these new points have been raised during the course of hearing before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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