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TMI Blog2015 (12) TMI 1411X X X X Extracts X X X X X X X X Extracts X X X X ..... or The Assessee : Shri R.V. Nadrekar ORDER Per G.S. Pannu, AM These cross appeals are directed against the order of the Commissioner of Income Tax (Appeals)-33, Mumbai (hereinafter referred to as the CIT(A) ) dated 31.08.2012 which in turn has arisen from an order passed by the Assessing Officer u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 16.12.2011, pertaining to the assessment year 2009-10 2. The Revenue has raised following Ground of appeal:- On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of ₹ 1,14,64,254/- by holding that the assessee being Cooperative Credit Society is not a Co-operative bank and hence is entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Accordingly, assessee s claim for exemption u/s 80P was denied in toto and the gross total income of ₹ 1,14,64,254/- was determined as the final taxable income. 5. In appeal before the CIT(A), the pertinent plea of the assessee was that a Cooperative Society engaged in the activity of providing credit facilities to its members is quite different from a Co-operative Bank, which falls under the restriction placed in sub-section (4) of section 80P of the Act. Therefore, as per the assessee, the provisions of sub-section (4) of section 80P of the Act did not disentitle the assessee from claim of exemption u/s 80P of the Act. The CIT(A) found that similar issue came up in the case of assessee for assessment year 2008-09, wherein, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has been functioning as a cooperative bank and by virtue of section 80P(4), the assessee is not entitled for the benefit of section 80P and also the assessee is not coming within the purview of primary agricultural society or primary co-operative agricultural and rural development bank. It is the case of the assessee that it is not a cooperative bank but only a cooperative society to which clause (4) of section 80P is not applicable. 4.2 In this connection, it is pertinent to mention that the assessee has brought on record before the lower authorities, the letter of the CBDT bearing No. F. No. 133/06/2007-TPL dated 09.05.2008 addressed to the Delhi Urban T C Society Ltd., stating that for the purposes of subsection 4 of section 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Society Ltd and the decision of the Tribunal in the case of DCIT Vs. Jayalakshmi Mahila Vividodeshagala Souharda Sahakari Ltd. [2012] 137 ITD 163. 4.4 In addition to the aforementioned discussion, the distinction between cooperative society registered under the Banking Regulation Act 1949 and the cooperative society registered under the Maharashtra State Cooperative Societies Act 1960 as brought out by the Ld.CIT(A) on the basis of the submission of the assessee is extracted hereunder: Sl. No. Co-operative societies Co-operative Banks 1 The Co-operative Credit Societies are registered under Maharashtra State Cooperative Societies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The7 provisions of Banking Regulation Act 1949 are not applicable to the Cooperative Credit Societies. The provisions of Banking Regulation Act 1949 are applicable to the Co-operative Bank. 6 The provisions of Banking Regulation Act 1949 are applicable to the Co-operative Bank. The Co-operative banks are required to obtain license from Reserve Bank of India to carry on its business. 7 The Co-operative credit societies do not have cheque facilities, clearing facilities and they cannot issue demand drafts, pay orders etc. The Co-operative have cheque facilities, clearing facilities and they issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goetze India Ltd. (supra). In view of that matter, the Ld.CIT(A) giving relief to the assessee at the appellate stage on the claim of deduction not made in the return of income is justified. 4.6 Considering the entire facts and position of law, we are of the considered opinion that the Ld.CIT(A) is justified in directing the AO to allow the deduction claimed by the assessee u/s 80P of the Act on the reason that the assessee, a cooperative credit society is not a bank for the purposes of section 80P(4) of the Act. Thus the orders of the Ld.CIT(A) dated 11.02.2011 and 29.11.2011 for the Assessment Years 2007-08 and 2008- 09 respectively are upheld. 7. Following the aforesaid precedent, which has been rendered in assessee s own cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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