TMI Blog2019 (1) TMI 1977X X X X Extracts X X X X X X X X Extracts X X X X ..... a cooperative society in the case of cooperative societies engaged in the business by providing credit facility to its members and the sub Sec.4 of the Sec.80P carves out an exception to this provision by providing that the exemption u/s.80P shall not be available to a Cooperative bank. However, primary agricultural cooperative societies which are engaged in agricultural and rural development bank whose business operations are confined to taluk level, the deduction would be available. In the present case, the AO had not gone into the question of verifying whether the Respondent-assessee-society is a mere cooperative society or a cooperative bank. In case, it is engaged in the activities of cooperative bank, and activities are not confin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n U/s. 80(P)(2) of the Act. 2.2 The Learned CIT(A) has not appreciated the fact that the assessee bank may not function as a normal scheduled bank. But it functions as a bank specialized in re-finance. The business of banking cannot be narrowly taken to the definition of banking as per the Banking Regulations Act. The assessee bank gets loans from NABARD, State Governments, raises debentures and finance to its members. 2.3 The learned CIT(A) failed to appreciate that the assessee bank claims that it only lends to its members. The annual report of the bank states that the bank has disbursed jewel loans both directly and also through its member primary banks, but the bank claims that the members of its member banks become asso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored. 3. At the outset, there is a delay of 9 days in filing of the present appeal. The Revenue has filed a petition for condonation of delay stating that the delay had occurred in obtaining the administrative approvals. Thus, the Revenue was prevented by sufficient cause for the delay in filing of the appeal has been caused on account of reasons which are beyond the control of the AO. Thus, it is prayed that the delay in filing of the present appeal to be condoned. On the other hand, ld. AR had no objections for condonation of delay. Under these circumstances, we condoned the delay and admitted the appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to the assessee not allowing the set off of brought forward losses of Rs.41,39,53,482/-. The alternative submission of the Respondent-aassessee that the deduction u/s.80P was not allowed by the AO. 5. Being aggrieved by this Sec.154 order, an appeal was preferred before the Ld.CIT(A) vide impugned order allowed the benefit of deduction u/s.80P placing reliance on the decision of the Tribunal in the assessee s own case for the AY 2009-10. Being aggrieved by this appeal, the Revenue is in appeal before us in the present appeal. The Ld.CIT(A) vehemently argued that the appellant society not eligible for deduction u/s.80P as it is a cooperative bank and also engaged in its business operations, which are not confined to any ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the Respondent-assessee-society is a mere cooperative society or a cooperative bank. In case, it is engaged in the activities of cooperative bank, and activities are not confined to the taluk level, it is clearly hit by provisions of Sub.Sec.4 of Sec.80P of the Act. Further, it is also requires to be verified whether the activities of the Respondent-society are confined to its Members and non-members also. In these circumstances, we are of the considered opinion that the matter should be restored to the file of the AO for the purpose of carrying out exercise of verification of business activities of the appellant on the above lines and accordingly we remit the issue to the file of the AO for examining the applicability of the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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