Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

2024 (1) TMI 1034

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ve identical facts. Therefore, disposed off by this common order. 02. Grounds in ITA No. 3114/Mum/2023 for A.Y. 2013-14:- "1. On facts and in circumstances of the case and in law, the learned The Commissioner of Income-tax (Appeals), National Faceless Appeal Centre [hereinafter referred to as learned CIT(A)] erred in passing the Order u/s. 250 of the Income-tax Act, 1961 (the Act) without appreciating the facts, submissions, documents and case law placed on record 2. Validity of reopening of assessment 2.1. The learned CIT(A) erred in upholding the validity of reopening of assessment even though there was no reason to believe that the income has escaped assessment and the assessment was reopened merely on the basis of audit objection....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that for a co-operative society to be considered as co-operative bank, it is required to have banking licence issued by Reserve Bank of India and co-operative society without banking licence cannot be considered as bank. 3.4. The learned CIT (A) erred when he failed to follow the principle laid down by the Order of Hon. Supreme Court that co-operative banks are also co- operative societies and income derived by a co-operative society from its investment held with a co-operative bank would be entitled for claim of deduction u/s. 80P(2)(d) of the Act. 3.5. The learned CIT(A) erred when he dismissed the Appellant's contention that precedent set by the Department in the Appellant's own cases in the earlier assessment years has not b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....97,789/-, which is not allowable. The assessee objected to the reopening of the assessment as well as contested the same on merit. The learned Assessing Officer rejected both and denied the deduction under Section 80P (2) (a) as well as (d) of the Act. Accordingly, the assessment order under Section 147 read with section 143(3) of the Act, wherein the learned Assessing Officer held that assessee is a primary co-operative bank and therefore, it is clearly not eligible for deduction under Section 80P(2)(a)(i) of the Act in view of the specific provisions of Section 2(24)(viia) read with explanation under Section 80P(4) of the Act with effect from 1st April, 2007. He also denied deduction under Section 80P (2) (d) of the Act. The total income ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ere is no such directive or finding in the decision of the Hon'ble Supreme Court. The claim is also that a co-operative society to be considered as a co-operative banks is mandatorily require to have license issued by Reserve Bank of India and a co-operative society without banking license cannot be considered as bank. 08. We have heard the rival contentions and perused the orders of the lower authorities. The facts clearly show that assessee is a co-operative credit society engaged in the business of providing credit facilities to its members only. Naturally, it does not have any banking license. Assessee filed return of income originally on 27th September, 2013 at Rs. nil, wherein the entire interest income of Rs.263,96,215/- was cla....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....edit facilities to its members. The whole of the amount profits and gains of such business attributable to such activities is deductible under Section 80P(2)(a) of the Act. Even otherwise, in respect of any income by way of interest or dividend derived by the co-operative society from its investment with any other co-operative society is also allowable as deduction fully under Section 80P(2)(d) of the Act, the facts are clear that assessee is a co-operative society and co-operative banks are also co-operative societies. The provisions of Section 80P (4) of the Act specifically denies deduction only to co-operative banks. The assessee is admittedly not a co-operative bank. The learned Assessing Officer instead of treating the assessee as cre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pening of the assessment is without any tangible material and further even otherwise on merit, the assessee is eligible for deduction under Section 80P(2)(d) of the Act. Therefore, for the reasons given for A.Y. 2013-14, the appeal of the assessee is allowed for A.Y. 2014-15 also. 013. For A.Y. 2017-18, the assessee filed its return of income at Rs.nil on 7th November, 2017, which was picked up for scrutiny and therefore, a show cause notice was issued to the assessee that why on interest income earned of Rs.2,68,31,658/- being interest received from co-operative banks on which deduction under Section 80P is clamed should not be disallowed. After hearing the case of the assessee, the learned Assessing Officer disallowed the deduction under....