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TMI Blog2015 (4) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... ction(4) of section 80P, would not apply to it. Also see CIT vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha [2015 (1) TMI 821 - KARNATAKA HIGH COURT] - Decided against Revenue. - I .T.A. No. 6905/Mum/2013 - - - Dated:- 28-4-2015 - SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER For the Appellant: Smt Neelam Nadkarni For the Respondent: Shri Nishit Gandhi O R D E R PER G.S. PANNU, A.M. This appeal by the Revenue is directed against the order passed by the ld. CIT(A) - 33, Mumbai dated 02-09-2013 for the A.Y. 2010-11 in the matter of an order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 dated 16-01-2013. 2. In this appeal, the Revenue h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for exemption under Section 80P(2)(a)(i) of the Act on the basis of the provisions of Section 80P(4) of the Act, which was inserted by Finance Act 2006 w.e.f. April, 1, 2007. The A.O. was of the opinion that after the insertion of sub-section (4) of Section 80P exemption shall not be available in relation to any Co-Operative Bank other than primary agricultural credit society or primary co-operative agricultural and rural development bank. According to the A.O. sub clause (viia) was also inserted in clause (iv) of Section 2 to provide that the profits and gains of any business of banking (including providing credit facilities) carried by cooperative society with its members shall be included in the definition of expression income . On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the ld. CIT(A), Revenue is in appeal before us. 6. Before us the ld. Representative of the assessee, at the outset, pointed out that the conclusion drawn by the ld. CIT(A) is in accordance with judgment of Hon ble Gujarat High Court in the case of CIT vs. Jafari Momin Vikas Co. Op. Credit Society Ltd. [2014] 362 ITR 331 (Guj). In this context the following discussion in the judgment of Hon ble Gujarat High Court is relevant:- The Assessing Officer held that by virtue of section 80P(4), the respondent-assessee would not be entitled to the benefits of deduction under section 80P. The Commissioner (Appeals) as well as the Tribunal reversed the decision of the Assessing Officer on the premise that the respondent-assessee not being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral credit society or a primary co-operative agricultural and rural development bank. For the purpose of the said sub-section, co-operative bank shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949. 3. In Part V of the Banking Regulation Act, 'co-operative bank means a State co-operative bank, a Central co-operative bank and a primary cooperative bank. 4. Thus, if the Delhi Co-op. Urban Thrift and Credit Society Ltd. does not fall within the meaning of 'co-operative bank' as defined in Part V of the Banking Regulation Act, 1949, sub-section (4) of section 80P will not apply in this case. 5. This is issued with the approval of the Chairman, Central Board of Direct Taxes. 7 Fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (2) of Section 80P shall be deducted in computing the total income of the assessee. In other words, the said income is not taxable. It is a benefit given to the Co-operative society. Section 80P(4) was introduced by Finance Act, 2006 with effect from 01.04.2007 excluding the said benefit to a Co-operative Bank. The said provision reads as under:- (4) The provisions of this section shall not apply in relation to any cooperative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. (a) co-operative bank and primary agricultural credit society shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949); ..... X X X X Extracts X X X X X X X X Extracts X X X X
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