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TMI Blog2018 (12) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals were heard together and we deem it appropriate to dispose off the same by way o this common order. 2. Briefly stated, the facts of the case are as under :- 2.1 For Assessment Year 2013-14, the assessee filed its return of income on 25.9.2013, declaring NIL income after claiming deduction under Section 80P(2)(a) and 80P(2)(d) of the Income Tax Act, 1961 (in short 'the Act') to the extent of Rs. 75,09,226. The case was taken up for scrutiny for this assessment year. The Assessing Officer rejected the claims and submissions of the assessee that it was a 'co-operative society' and therefore eligible to claim deduction under Section 80P(2)(a) and 80P(2)(d) of the Act in respect of interest earned on credit facilities afforded to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Section 80P(4) of the Act was not eligible to claim deduction under Section 80P of the Act. The assessment was completed under Section 143(3) of the Act vide order dt.23.12.2016; wherein the assessee's income was determined at Rs. 1,03,30,715 in view of the Assessing Officer rejecting the assessee's claim for deduction under Section 80P of the Act. On appeal, the CIT (Appeals) - 5, Bangalore dismissed the assessee's appeal vide the impugned order dt.2.8.2017. 3.1 Aggrieved by the aforesaid order software CIT (Appeals)-5, Bangalore dt.1.8.2017 for Assessment Year 2013-14 and dt.2.8.2017 for Assessment Year 2014-15, the assessee has preferred these appeals before this Tribunal. On a perusal of the grounds raised in the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act draws reference and consequently, the provisions of section 80 P [4] of the Act are not applicable to the case of the appellant. 5. The learned Commissioner of Income-tax (Appeals] is not justified in holding that the Appellant has violated the bye-laws and the Kamataka Societies Registrations Act, 1959 without even properly verifying the facts of the case of the appellant and erroneously denied the eligible claim of deduction by the appellant under section 80 P [2][a][i] of the Act, on the facts and circumstances of the case. 6. Without prejudice, the learned CIT[A] failed to appreciate that the decision of the Honble Apex Court in the case of Citizens Co-Operative Society is not applicable to the instant case so far as the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The learned AR submitted that the primary issue raised in these appeals was in respect of the finding of the AO, and upheld by the CIT(A) that the assessee is a 'Co-operative Bank' and not a 'Cooperative Society', which it is contended is factually erroneous since the assessee did not possess a banking license issued by the R.B.I., the regulator of banking in India. In these circumstances, the learned AR submits that it is evident that the assessee is not a Co-operative Bank and therefore the assessee being a Co-operative Society as claimed, would notbe hit by the mischief of the provisions of Section 80P(4) of the Act and hence as such, would be entitled to be allowed its claim for deduction u/s 80P(2) of the Act. The AR contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible for deduction under section 80P of the Act. 3.6.2 The crucial finding of fact as to whether the assessee was a Cooperative Bank and held a banking licence issued by RBI, as laid down by the Hon'ble Apex Court in the case of M/s. Citizens Co-operative Society Ltd., (supra) has not been examined and rendered by the authorities below. In this regard, the Hon'ble Apex Court at para 24 of its order (supra) has held as under: "24) Undoubtedly, if one has to go by the aforesaid definition of 'co-operative bank', the appellant does not get covered thereby. It is also a matter of common knowledge that in order to do the business of a co-operative bank, it is imperative to have a licence from the Reserve Bank of India, which the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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