TMI Blog2012 (8) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... cooperative society. Also, the objects of the society are fortified by the letter of the President as per which it has been specifically mentioned that the society is restricted to employees of BHEL and no outsider is permitted to become a member or shareholder of depositor or lender or borrower. The finding of the AO is contrary to the facts. Since the assessee society is providing credit facilities to its members only, therefore, clearly entitled to deduction u/s 80P(2) of the Act - Decision in Favour of Assessee. - ITA No. 217/Ind/2012 - - - Dated:- 6-8-2012 - SHRI JOGINDER SINGH, JUDICIAL MEMBER And SHRI R.C. SHARMA, ACCOUNTANT MEMBER For the Appellant : Shri Keshav Saxena For the Respondent : Shri Ajay K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bers of this credit society who deposit monthly subscriptions (thrift) with the assessee society and they are advanced loans by the credit society out of such deposits. Therefore, it was contended that the assessee society is engaged in providing credit facilities to its members only and not to the public at large, therefore, the society is entitled to deduction u/s 80P of the Act. 2.3 We have considered the rival submissions and perused the material available on record. The learned AO disallowed the claimed exemption u/s 80P and added to the total income of the assessee. On appeal, the same was directed to be deleted by the learned CIT(A) against which the Revenue is in appeal before the Tribunal. Before coming to any conclusion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rge. (c) The society is engaged in providing credit facilities to its members only. (d) The society is forbidden to grant any loan to any person other than its members meaning thereby the object is of mutual benefit only. (e) The objects of the society are fortified by the letter of the President dated 19th January, 2012 (page 50 of the paper book) as per which it has been specifically mentioned that the society is restricted to employees of BHEL and no outsider is permitted to become a member or share holder of depositor or lender or borrower. (f) The assessee society is forbidden to grant any loan, advance or any kind of assistance to any person other than its members (g) The accounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of banking or providing credit facilities to its members. In the present appeal also, the assessee society is providing credit facilities to its members only and not to the public at large, therefore, the case of the assessee is covered by this section and not by sub-section (4) of section 80P which was inserted by the Finance Act, 2006 with effect from 1.4.2007. Earlier sub-section (4) was omitted by the Finance Act, 1969 with effect from 1.4.1970. The assessee society is neither a bank nor a rural development bank, therefore, the assertion made by the learned CIT DR is not applicable to the facts of the present appeal. The finding of the AO that the assessee society is carrying on business of banking is also contrary to the facts. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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