TMI Blog2023 (5) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... i Ltd. [ 2023 (5) TMI 372 - SC ORDER] held that a taxpayer who is merely giving credit to its members cannot be said to be the Co-operative Banks/Banks under the Banking Regulation Act and the banking activities under the Banking Regulation Act are altogether different. Therefore, held that the assessee, a co-operative credit society, could not be termed a bank/co-operative bank and that being a credit society, it was entitled to exemption under section 80(P)(2) of the Act. Thus, there is also no basis in the finding of the AO that section 80P(4) is applicable to the assessee. Regarding the claim of deduction under section 80P(2)(d) of the Act, it is also pertinent to note that all co-operative banks are co-operative societies but vice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in confirming the addition of Rs.75,00,740/- made by the Ld. AO being disallowance of deduction u/s. 80P claimed by the appellant. Your appellant, therefore, prays that deduction u/s. 80P of Rs.75,00,740/- be allowed to it. Your appellant craves leave to alter, modify, amend or delete any of the above grounds of appeal, or to add one or more new ground(s), as may be necessary. 3. The brief facts of the case as emanating from the record are: The assessee is a co-operative credit society registered under the Maharashtra Co-operative Societies Act, 1960, and is engaged in the business of providing credit facilities to its members. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, the AO denied the deduction of Rs.75,00,739 claimed by the assessee under section 80P of the Act. 4. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee and held that the assessee has deposited money with MDCC Bank Ltd., which is a bank, and thus section 80P(4) of the Act is applicable to it. Accordingly, the learned CIT(A) held that the assessee cannot claim benefit under section 80P(2)(d) of the Act on the ground of investment in any other co-operative bank. Being aggrieved, the assessee is in appeal before us. 5. We have considered the submissions of both sides and perused the material available on record. The only dispute raised by the assessee in the present appeal is against the denial of deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th any other co-operative society, the whole of such income; 6. Thus, for the purpose of provisions of section 80P(2)(d) of the Act, two conditions are required to be cumulatively satisfied- (i) income by way of interest or dividend is earned by the co-operative society from the investments, and (ii) such investments should be with any other co-operative society. Further, the term co-operative society‟ is defined under section 2(19) of the Act as under: (19) co-operative society means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies ; 7. In the present case, there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clude co-operative banks that function at par with other commercial banks i.e. which lend money to members of the public. Thus, we are of the considered view that section 80P(4) of the Act is of relevance only in a case where the assessee, who is a co-operative bank, claims a deduction under section 80P of the Act. Therefore, we find no merits in the aforesaid reasoning adopted by the learned CIT(A) in denying deduction under section 80P(2)(d) of the Act to the assessee. We also find that in a recent decision in PCIT vs Annasaheb Patil Mathadi Kamgar Sahakari Pathpedi Ltd. [2023] 150 taxmann.com 173 (SC), the Hon‟ble Supreme Court held that a taxpayer who is merely giving credit to its members cannot be said to be the Co-operative Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by a co-operative society on its investment held with co-operative bank would be eligible for claim of deduction under section 80P(2)(d) of the Act. We are of the considered view that the Ld. CIT(A) has erred in upholding the denial of deduction by the AO to the assessee under section 80P(2)(d) of the Act. 8. So following the decision rendered by Hon ble Karnataka High Court (supra) and Hon ble Gujarat High Court (supra) and order passed by the coordinate Bench of the Tribunal discussed in preceding paras, we are of the considered view that assessee society who has earned an amount of Rs.16,76,460 and Rs.87,93,570/- for A.Y. 2013-14 and A.Y. 2018-19 respectively from its investment of surplus fund parked with co-operative banks is en ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
