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TMI Blog2021 (12) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... A NO.10/CIT(A), TVM/2013- 14 DT.30.01.2015 ITA NO.182/COCH/2015 DTD 03.11.2016 02/2017 2 2011-12; dtd.30.12.2013 ITA NO.115/TVM/CIT(A), TVM/2013-14 DT.28.11.2014 ITA NO.26/COCH/2015 DTD 03.11.2019 06/2017 Appeals filed by the Revenue Sl. No. Assessment Year & Date of Assessment Order Order of Commissioner of Income Tax (Appeals) Income Tax Appellate Tribunal ITA No. 1 2010-11; dtd.19.03.2013 ITA NO.10/CIT(A), TVM/2013- 14 DT.30.01.2015 ITA NO.101/COCH/2015 DTD 03.11.2016 30/2017 2 2011-12; dtd.30.12.2013 ITA NO.115/TVM/CIT(A), TVM/2013-14 DT.28.11.2014 ITA NO.236/COCH/2015 DTD 03.11.2019 31/2017 3. ITA No.2/2017 and ITA No.30/2017 are treated as representative appeals for disposing of the four appeals. The questions of law raised in these appeals are excerpted hereunder: ITA No.2/2017 a. Whether on the facts and in the circumstances of the case, and in law the Appellate Tribunal was justified in treating the Appellant as a co-operative bank' and denying the benefit under Section 80P(2)(a)(i) of the Act, without considering the fact that the Appellant does not fall within the definition of meaning assigned to 'co-operative bank' in Part V of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the deduction under section 80P(2) (a)(i), is not the Tribunal contradicting itself when it holds that the assessee is entitled for deduction under section 80P(2)(a)(i) as a State Development Bank. Is not such an order perverse? (ii) Is not the decision of the Tribunal contrary to law and perverse, especially in view of the observation of the Madras High Court in CIT Vs Madras Autorickshaw Drivers' Cooperative Society Ltd. [1983] 143 ITR 981 (MAD) which is affirmed by the Apex Court in [2001] 249 ITR 330(SC): "The tax relief under section 80P(2)(a)(i) is a grant by Parliament not to a category of income but to a category of assessee, namely a cooperative society answering the description of a society engaged in carrying on the business of providing credit facilities to its members. If the society in question does not answer this description, it is not entitled to relief. For invoking or applying this provision, it is not permissible to make a break-up of the income of the society as so much derived from the provision of credit facilities and so much from other income." (iii) In view of the finding of this Hon'ble High Court in its decision in the case of very ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, does not come in the way of this Court following the binding precedent of the Supreme Court in Mavilayi Service Cooperative Bank Ltd. and allow the deduction claimed under Section 80P(2) of the Act. Therefore, the assessee prays for setting aside the orders under appeal and extend the benefit of deduction claimed under Section 80P(2) of the Act to the assessee. 5. Per contra, Mr Christopher Abraham contends that the assessee relies on a few details, now furnished by either Reserve Bank of India or with reference to Act 1981 and apply the dictum of Mavilayi Service Co-operative Bank Ltd., to the circumstances already considered by the Tribunal and the authorities. He contends that while the Department is not disputing the principle laid down in Mavilayi Service Co-operative Bank Ltd., its applicability to the case on hand with reference to basic circumstances established by the assessee ought to be considered by either the Tribunal or authorities under the Act. 5.1 It is contextual to refer to the following paragraphs from Mavilayi Service Co-operative Bank Ltd. on which substantial reliance has been made by the assessee. "39. The above material would clearly indicate that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they may also be giving loans to their members which are not related to agriculture. Also, in case it is found that there are instances of loans being given to non-members, profits attributable to such loans obviously cannot be deducted." 5.2 The assessee, by referring to the definition of "Cooperative Bank"; "Central Co-operative Bank"; "State Cooperative Bank"; and "Primary Co-operative Bank" as defined in the Banking Regulation Act, 1949 read with State Land Development Bank in Section 2(v) of the Act 1981, contends that the assessee was and is a Co-operative Society catering to the needs of its constituent members, who are none other than the District Level Land Development Banks and the assessee is not into banking business, therefore, is entitled to the deduction of Section 80P(2). 6. We have taken note of the circumstances adverted to above. Firstly, in assessee's own case in ITA No.103/2011, this Court has considered the standing of the assessee vis-a-vis Section 80P(2) of the Act and denied the claim for deduction as a Co-operative Society. The said judgment is in appeal before the Supreme Court. In Mavilayi Service Co-operative Bank Ltd. case, from the paragraph ..... X X X X Extracts X X X X X X X X Extracts X X X X
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