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TMI Blog2017 (4) TMI 1249X X X X Extracts X X X X X X X X Extracts X X X X ..... t the income earned is attributable to dealings with the non-members are concerned, the benefit of section 80P of the Act would not be available. In the above view of the matter, at the time when effect has been given to the order of this Court, the authorities under Act would restrict the benefit of deduction u/s 80P of the Act only to the extent that the same is earned by the appellant in carrying on its business of providing credit facilities to its members. Thus hold that the assessee is entitled to the benefit of deduction available u/s 80P of the Act. However, as held in the above judgement to the extent the income earned is attributable to dealings with non-members are concerned the benefit of section 80P of the Act would not be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case and in law, the learned CIT(A) has erred in not appreciating the facts that the assessee falls under the category of Primary Co-operative Bank as per definition in part V of the Banking Regulation Act, 1949. iv. On the facts and circumstances of the case and in law, the learned CIT(A) for conceding the relief to the assessee, has erred in relying upon the decision of the Hon ble Bombay High Court in the case of Quepem Urban Co-operative Credit Society, 58 taxmann.com 113, without appreciating the fact that the said decision has not been accepted by the Revenue, and the Hon ble Apex Court has granted SLP in the said case to the Department as reported in 63 taxmann.com 300. v. The appellant prays that the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it does not require a banking license to do the banking business with the members of the society and cannot use cheque / clearing facility which are available. The AO was not convinced with the explanation of the assessee and brought to tax gross total income of ₹ 41,38,991/- and dividend income of ₹ 1,38,720/-. 4. Aggrieved by the order of the AO, the assessee s society filed an appeal before the learned CIT(A). We find that the learned CIT(A) relying on the decision in the case of (i) Quepem Urban Co-operative Credit Society Ltd. vs. ACIT (2015) 58 taxman.com 133 (Bom), (ii) CIT vs. Sri Biluru Gurubasave Pattini Sahakari Sangha Niyamitha Bagalkot (2015) taxmann.com 280 (Kar), (iii) CIT vs. Jafari Momin Vikssa Cooperat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooperative Bank but a Cooperative Credit Society. The Tribunal restored the AO s order. On appeal, the Hon'ble Bombay High Court held that on facts, the assessee was not a Cooperative Bank rather it was a Cooperative Society and, therefore, its claim for deduction was to be allowed. However, the Hon'ble High Court held further : .....Section 80P(1) of the Act restricts the benefits of deduction of income of Cooperative Society to the extent it is earned by providing credit facility to its members. Therefore, to the extent the income earned is attributable to dealings with the non-members are concerned, the benefit of section 80P of the Act would not be available. In the above view of the matter, at the time when effect has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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