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TMI Blog2015 (1) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... ds/2014 - - - Dated:- 30-1-2015 - SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER Appellant by : Shri P. Radhakrishnan, JCIT Respondent by : Shri S. Ramachandran, FCA O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER The appeal of the Revenue is directed against the order of Commissioner of Income-tax(Appeals)-I, Coimbatore dated 1.5.2014 for the assessment year 2010-11. 2. The appeal has been filed with a delay of 2 days. The Revenue has filed an Affidavit citing reasons for delay in filing of the appeal. After perusal of same, we are satisfied that the delay in filing of the appeal is not intentional or willful. The delay in filing of the appeal is condoned and the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. The Tribunal has held that the assessee is not a co-operative bank but a co-operative society and thus, is eligible to claim deduction as envisaged under sec.80P of the Act. The relevant extract of the Tribunal order in ITA No.197/Mds/2013 is reproduced herein below: 5. We have heard the submissions made by the representatives of both the sides. We have also perused the orders of the authorities below as well as the decisions on which the ld.AR has placed reliance. The assessee is an agricultural co-operative credit society registered under the Tamil Nadu Co-operative Societies Act, 1961. The assessee society was established in the year 1968 and the members of the society are agriculturists. The primary activity of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Primary Agricultural Credit Societies are entitled for the same. For the purpose of sub-section 4, co-operative bank and Primary Agricultural Credit Society shall have the meanings assigned to them under the Banking Regulation Act, 1949. We find that the issue whether credit co-operative societies are same as co-operative banks has been dealt in detail by the Bangalore Bench of the Tribunal in the case of ACIT Vs. M/s.Balgalore Commercial Transport Credit Co-operative Society Ltd., (supra). After comparative analysis of the cooperative banks and co-operative societies on various parameters, the Tribunal came to the conclusion that the activities of both the organizations and the compliances to be made under various Acts for bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Had this been the plain statutory provisions under consideration in isolation, in our opinion, the question of law could be stated to have arisen. When, as contended by the assessee, by virtue of subsection(4) only cooperative banks other than those mentioned therein were meant to be excluded for the purpose of deduction under section 80P, a question would arise why then Legislature specified primary agricultural credit societies along with primary cooperative agricultural and rural development banks for exclusion from such exclusion and in other words, continued to hold such entity as eligible for deduction. However, the issue has been considerably simplified by virtue of CBDT circular No.133 of 2007 dated 9.5.2007. Circular provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity not being a cooperative bank, section 80P(4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenue s contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not cooperative banks. In the present case, respondent assessee is admittedly not a credit cooperative bank but a credit co-operative society. Exclusion clause of sub-section(4) of section 80P, therefore, would not apply. In the result, Tax Appeals are dismissed . The Revenue has tried to establish that the assessee although a credit co-operative society is carrying banking business and is thus not eligible. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X
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