TMI Blog2022 (3) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... o directed to consider the claim of the respondents/co-operative societies and pass orders, on merits and in accordance with law and also in the light of the decision rendered MAVILAYI SERVICE COOPERATIVE BANK LTD. ORS. VERSUS COMMISSIONER OF INCOME TAX, CALICUT ANR. [ 2021 (1) TMI 488 - SUPREME COURT] Accordingly, the orders impugned herein, shall stand modified. - Writ Appeal Nos. 2396, 2759, 2847, 2851, 2868 and 2884 of 2021 and 138, 165, 243, 252, 281, 314 and 491 of 2022 And CMP Nos. 15277, 15280, 18116, 18947, 18974, 19346 & 19694 of 2021 and 1028, 1105, 1774, 1836, 1997, 2390 & 3545 of 2022 - - - Dated:- 10-3-2022 - Honourable Mr. Justice R. Mahadevan And Honourable Mr. Justice J.Sathya Narayana Prasad For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment dated 28.12.2018, the respondent / writ petitioner has filed WP No. 769 of 2019. 5. The learned Judge, on consideration of the submissions made by both sides, disposed of the said writ petition No. 769 of 2019 on 06.09.2019 along with other writ petition, after having found that the issue involved in the writ petitions is covered by the judgment dated 02.08.2016 passed by the Division Bench of this Court in Tax Case Appeal Numbers 484 to 487 and 490 of 2016 wherein it was held that the exemption spelt out in section 80P(4) of the Income Tax Act, 1961, is applicable to the credit society. However, it was brought to the notice of the learned Judge by the counsel for the revenue that as against the said order passed by the Division ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to the benefit of Section 80P of the Act. It is further stated that assailing the said order passed by the Division Bench of this Court, the Revenue has carried the matter on appeal before the Honourable Supreme Court in Special Leave to Appeal (c) No(s).17745/2019 [Prl. Commissioner of Income Tax Vs. M/s.S.1308 Ammapet Primary Agricultural Cooperative Bank Ltd] and the Honourable Supreme Court, by judgment dated 17.01.2020 permitted the Department to withdraw the appeal while keeping the question of law open for consideration. The order dated 17.01.2020 passed by the Honourable Supreme Court reads as follows: Permission granted, subject to just exceptions. The special leave petition and pending applications are dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere. Further, section 80P(4) is to be read as a proviso, which proviso now specifically excludes co-operative banks which are co-operative societies engaged in banking business i.e. engaged in lending money to members of the public, which have a licence in this behalf from the RBI. Judged by this touchstone, it is clear that the impugned Full Bench judgment is wholly incorrect in its reading of Citizen Cooperative Society Ltd. (supra). Clearly, therefore, once section 80P(4) is out of harm s way, all the assessees in the present case are entitled to the benefit of the deduction contained in section 80P(2)(a)(i), notwithstanding that they may also be giving loans to their members which are not related to agriculture. Also, in case it is foun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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