9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 533 - AT - Income TaxDeduction u/s 80P - HELD THAT - We noted that in assessee s own case the Hon'ble Bombay High Court 2017 (3) TMI 1799 - BOMBAY HIGH COURT relying upon the judgment of co-ordinate bench in the case of Quepem Urban Co-operative Credit Society Ltd V/s ACIT, 2015 (6) TMI 573 - BOMBAY HIGH COURT has held that the assessee-society is not a co-operative bank and hence entitled for deduction under Section 80P of the Act. Once the Hon'ble Bombay High Court has considered the issue and nothing new was argued before us, we are of the view that the CIT(A) has rightly allowed the claim of deduction under Section 80P of the Act. Accordingly, we confirm the order of CIT(A) and the appeal of Revenue is dismissed.
Issues:
- Interpretation of Section 80P of the Income Tax Act, 1961 regarding deduction eligibility for co-operative credit societies. - Application of the definition of 'banking business' to determine eligibility for deduction under Section 80P. - Consideration of precedents and judgments in similar cases for assessing deduction eligibility. Analysis: 1. The appeal by the Revenue and cross-objection by the assessee stemmed from the order of CIT(A)-26, Mumbai regarding the eligibility of a co-operative credit society for deduction under Section 80P of the Income Tax Act, 1961 for Assessment Year 2013-14. 2. The Revenue contested the deletion of an addition by the CIT(A) based on the classification of the assessee as a co-operative credit society rather than a co-operative bank, challenging the interpretation of Section 80P. 3. The assessee's cross-objection supported the CIT(A)'s decision, emphasizing the consistency of past judgments in similar cases and the bonafide nature of their deduction claim under Section 80P. 4. The assessment noted the nature of the assessee as a co-operative credit society under the Maharashtra State Co-operative Societies Act, solely providing credit facilities to its members, establishing its distinction from a co-operative bank. 5. The CIT(A) analyzed the definition of 'banking business' under the Banking Regulation Act, 1949, concluding that accepting deposits only from members did not qualify as banking business, thereby upholding the eligibility of the assessee for deduction under Section 80P. 6. Citing previous judgments, including the Hon'ble Bombay High Court's decision, the CIT(A) affirmed the assessee's entitlement to deduction under Section 80P, dismissing the Revenue's appeal. 7. Given the precedent set by the Hon'ble Bombay High Court and the lack of new arguments, the Tribunal upheld the CIT(A)'s decision, confirming the eligibility of the assessee for deduction under Section 80P. 8. The cross-objection of the assessee, aligned with the CIT(A)'s order, was deemed infructuous and dismissed accordingly. 9. Ultimately, both the appeal of the Revenue and the cross-objection of the assessee were dismissed, affirming the eligibility of the co-operative credit society for deduction under Section 80P of the Income Tax Act, 1961. Order: The Tribunal pronounced the order on 1st February 2021, upholding the decision of the CIT(A) and dismissing both the Revenue's appeal and the assessee's cross-objection.
|
