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TMI Blog2016 (4) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... co-operative society filed its return of income for the year under consideration on 7.8.2009. The return was processed u/s. 143(3) of the Act and the AO assessed the total income as returned by the assessee without making any addition. The ld. CIT, however, exercising his powers u/s. 263 of the Act observed that the assessee had claimed deduction u/s. 80P of the Act. He observed that as per the amendments introduced vide Finance Act, 2006 w.e.f. 1.4.2007, as per sub-section 4 to Sec. 80P, deduction u/s. 80P is not available to the assessee society not being an agricultural co-operative society. He show caused the assessee in this respect. In reply, the assessee submitted that the assessee society was a co-operative credit society and not a co-operative bank, and thus was entitled to deduction u/s. 80P of the Act. The assessee in this respect relied upon the CBDT letter in F.No. 133/06/2007-TPL dt. 9.5.2008. The assessee also relied upon the clarification given by the RBI in this respect. The assessee also relied upon certain case laws in this respect. However, the ld. CIT rejected the contentions of the assessee and observed that the Department had not accepted the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein the Tribunal has thoroughly discussed difference between a co-operative society and a co-operative bank and relying upon the decision of the coordinate Bench of the Tribunal dt. 28.3.2014 passed in ITA Nos. 3223/Mum/2011 and 505/Mum/2012 has held that a co-operative credit society is different from a co-operative bank and thus is entitled to deduction u/s. 80P of the Act. The relevant part of the findings of the Tribunal, for the sake of convenience, is reproduced below : 6. Before us, it was a common point between the parties that identical controversy has been considered by the Tribunal in the assesse's own case for assessment years 2007-08, and 2008-09 vide ITA Nos. 3223/Mum/2011 505/Mum/2012 dated 28.03.2014, whereby it has been held that assessee Co-operative Society does not fall within the restriction placed in sub-section (4) of section 80P of the Act. The following discussion in the order of the Tribunal dated 28.03.2014 (supra) is relevant:- 4. Having heard both the sides and perused the material on record, it is pertinent to mention that the only issue arising out of both the appeals relate to the allowability of the exemption/deduction claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purposes of section 80P(4) of the Act. If the intention of the legislature was not to grant deduction to cooperative societies carrying on the business of providing credit facilities to its members, then this section would have been deleted. This proposition is supported by various decisions including the decision of the Gujarat High Court in the case of CIT Vs. Jafari Momin Vikas Cooperative 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 Act, 1960 and governed, regulated, administered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Co-operative Banks are mandatorily required to use word Bank/Bankers in their name. 9 Reserve Bank of India has no statutory power of control and supervision of Cooperative Societies. Reserve Bank of India has vested with statutory powers of control and supervision of Cooperative Banks. The above distinction makes it very clear that the assessee is not a co-operative bank for the purposes of section 80P(4) of the Act. 4.5 As regards the claim of the revenue that for the Assessment Year 2007-08, the assessee has not claimed the deduction of the section 80P of the Act in the return of income but claimed the same only during the course of the assessment proceedings and hence the claim of the assessee is not admissible in view of the findings of the Hon'ble Apex Court in the case of Goetze India Ltd. [284 ITR 323 (SC) (2006)], it is pertinent to mention that the Hon'ble Bombay High Court in the case of the CIT Vs. Pruthvi Brokers and Shareholders P. Ltd. [(2012) 349 ITR 336 (Bom)] has held that the appellate authorities have the power to consider the claim not made in return ..... X X X X Extracts X X X X X X X X Extracts X X X X
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