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TMI Blog2014 (3) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... is not a co-operative bank. The activities in the nature of accepting deposits, advancing loans etc., carried on by the assessee are confined to its members only and that too in a particular geographical area. The activities of the assessee are not regulated by the RBI or the provisions of the Banking Regulation Act. - Decided in favour of assessee - I.T.A. No. 2287/Mds/2013 - - - Dated:- 21-3-2014 - SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER Appellant by : Shri T.N.Betgeri, JCIT Respondent by : Shri S.Ramachandran, CA., O R D E R PER VIKAS AWASTHY, J.M: The appeal has been filed by the Revenue against the order of the Commissioner of Income Tax(Appeals)-I, Coimbatore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supra). 4. On the other hand, Shri T.N.Betgeri, appearing on behalf of the Revenue fairly conceded that the issue in present appeal is squarely covered by the decision of the co-ordinate bench of the Tribunal in assessee s own case relevant to the AY.2009-10. 5. Both sides heard. The ld.AR of the assessee has placed on record the copy of the order of the Tribunal in ITA No. 197/Mds/2013 relevant to the AY.2009-10, wherein it has been held that the assessee is entitled to claim deduction u/s.80P. A perusal of the Assessment Order passed u/s.143(3) r.w.s.147 shows that re-assessment proceedings were initiated against the assessee on the basis of scrutiny assessment in the AY.2009-10, wherein the assessee was treated as co-operative ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural and Rural Development Bank. The same reads as under: Explanation .-For the purposes of this sub-section,- (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); (b) primary co-operative agricultural and rural development bank means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.] From the provisions of sub-section 4 of section 80P and the Explanation to section 80P, it is evident that the benefit of section 80P is not available to co-operative banks whereas the Primary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to consideration the CBDT Circular No.133/07 has held that sub-section 4 section 80P will not apply to assessee which is not a co-operative bank. The relevant extract of the order of the Hon ble High Court is reproduced herein below: 5. Assessing Officer held that by virtue of section 80P(4), the respondent assessee would not be entitled to benefits of deduction under section 80P. CIT(Appeals) as well as the Tribunal reversed the decision of the Assessing Officer on the premise that the respondent assessee not being a bank, exclusion provided in sub-section(4) of section 80P would not apply. This, irrespective of the fact that the respondent would not fall within the expression primary agricultural credit society. 6. Had this bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, Co-operative Bank means a State Co-operative bank, a Central Cooperative Bank and a primary Co-operative bank. 4. Thus, if the Delhi Co op Urban T C Society Ltd. does not fall within the meaning of Co-operative Bank as defined in part V of the Banking Regulation Act, 1949, subsection(4) of section 80P will not apply in this case. 5. The issues with the approval of Chairman, Central Board of Direct Taxes. 7. From the above clarification, it can be gathered that subsection( 4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift Credit Society Ltd. was under consideration. Circular clarified that the said entity not being a cooperati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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