TMI Blog2021 (10) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... enue has assailed the impugned order on the following grounds before us: (i) On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in deleting the disallowance of ₹ 1,36,39,920/- u/s 80P made by the Assessing Officer by holding that the assessee is not a cooperative bank therefore, the provisions of Section 80P(4) of the Act are not applicable to the assessee, without appreciating that the assessee squarely falls within the definition of cooperative bank provided in Part-V of the Banking Regulation Act, 1949? (ii) On the facts and circumstances of the case and law, the Ld. CIT(A) erred in not appreciating the fact that the sub clause (viia) to clause 24 of Section 2 of the Act clearly indicate that profits and gains of any business of banking (including providing credit facilities) carried on by a cooperative society with its members is income of the cooperative society providing credit facilities to its members. (iii) The appellant craves leave to amend, modify and alter any grounds of appeal during the course of hearing of this case. 2. Briefly stated, the assessee which is a co-operative credit society had e-filed its return of income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.R to drive home her aforesaid contention. As stated by the ld. A.R, and rightly so, the issue in question before us i.e the entitlement of the assessee society for claim of deduction u/s 80P(2)(a)(i) of the Act is squarely covered by the order passed by the Tribunal in the assessee‟s own case for A.Y. 2010-11 in ITA No. 6905/Mum/2013, dated 28.04.2015. On a perusal of the order passed by the Tribunal, we find, that as in the case before us, the A.O in the assessee‟s own case for A.Y 2010-11 had declined its claim for deduction u/s 80P(2)(a)(i) of the Act. However, the aforesaid view taken by the A.O was vacated by the CIT(A). On further appeal by the revenue, the Tribunal relying on a plethora of the judicial pronouncements/orders had upheld the view taken by the CIT(A) and concluded that the assessee‟s claim for deduction u/s 80P(2)(a)(i) was in order. The Tribunal while concluding as hereinabove had observed as under: 3. In brief, the relevant facts are that the respondent assesee is a Co-Operative Society registered under the Maharashtra Co-Operative Societies Act, 1960. The society is run by the employees of Bharat Petroleum Corporation Ltd. and its main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Vasavi Multipurpose vs CIT ITAT Bangalore bench order dated 10,05.2015. 5. Accordingly, he directed the A.O. to allow deduction to the assessee under Section 80(P)(2)(a)(i) of the Act except to the extent of interest income earned by the assesse from SBI, Patiala. Against the aforesaid decision of the ld. CIT(A), Revenue is in appeal before us. 6. Before us the ld. Representative of the assessee, at the outset, pointed out that the conclusion drawn by the ld. CIT(A) is in accordance with judgment of Hon‟ble Gujarat High Court in the case of CIT vs. Jafari Momin Vikas Co. Op. Credit Society Ltd. [2014] 362 ITR 331 (Guj). In this context the following discussion in the judgment of Hon‟ble Gujarat High Court is relevant:- The Assessing Officer held that by virtue of section 80P(4), the respondent-assessee would not be entitled to the benefits of deduction under section 80P. The Commissioner (Appeals) as well as the Tribunal reversed the decision of the Assessing Officer on the premise that the respondent-assessee not being a bank, exclusion provided in sub-section (4) of section 80P would not apply. This, irrespective of the fact that the respondent would not f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the said entity not being a co-operative bank, section 80P(4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenue's contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not co-operative banks. In the present case, the respondent-assessee is admittedly not a credit co-operative bank but a credit co-operative society. The exclusion clause of sub-section(4) of section 80P, therefore, would not apply. In the result, the tax appeals are dismissed. 7. Apart from this, the Hon‟ble Karnataka High Court in the case of CIT vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha in Income Tax Appeal No. 5006/2013 dated 5th February, 2014 also considered a similar issue. The following discussion in the judgment of Hon‟ble Karnataka High Court is relevant:- Section 80P of the Act deals with the deduction of income of a society. In the case of any assessee being a Co-operative society, the whole of the amounts of profits and gains of business attributable to any of other activities referred to sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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