2017 (2) TMI 1404 - AT - Income Tax

Denial of deduction under Section 80P - assessee a Co-operative Bank claimed deduction - Held that - As rightly submitted by the assessee, the Madras High Court in the assessee s own case 2017 (4) TMI 181 - MADRAS HIGH COURT found that the assessee Co-operative Bank is not a bank and it is only a credit society. The High Court further observed that the activity of the assessee in accepting deposits, advancing loans etc., are confined only to its members and also restricted to a particular geographical area. Therefore, the High Court found that the assessee s society is eligible for deduction under Section 80P(2)(a)(i) - no reason to interfere with the order of the lower authority. Accordingly the same is confirmed. - decided against revenue

Summary

Issues:
1. Delay in filing the appeal by the Revenue.
2. Eligibility of a Co-operative Bank for deduction under Section 80P of the Income Tax Act, 1961.

Analysis:
1. Delay in filing the appeal: The Revenue's appeal was filed with a delay of 24 days, and no petition for condonation of delay was submitted. However, after hearing both parties, the Tribunal found a sufficient cause for the delay and decided to condone it, admitting the appeal.

2. Eligibility of a Co-operative Bank for deduction under Section 80P: The Departmental Representative contended that a Co-operative Bank cannot claim deduction under Section 80P of the Act, citing a previous Tribunal decision. On the other hand, the representative for the assessee argued that the assessee, not being a Co-operative Bank but a credit society, is eligible for the deduction under Section 80P(a)(i) of the Act. The Madras High Court had previously ruled in favor of the assessee, stating that the activities of the society were limited to its members and a specific geographical area, making it eligible for the deduction. The Tribunal, in line with the High Court's judgment, upheld the eligibility of the assessee for the deduction and confirmed the lower authority's order.

In conclusion, the Tribunal dismissed the Revenue's appeal, citing the eligibility of the Co-operative Bank for deduction under Section 80P of the Income Tax Act based on the Madras High Court's ruling.