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TMI Blog2012 (9) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... perative credit society is entitled to deduction u/s.80P(2)(a)(i) of the Income Tax Act. Decision in the case of INCOME-TAX OFFICER, WARD 1(4) VERSUS JANKALYAN NAGRI SAHAKARI PAT SANSTHA LTD. [ 2012 (9) TMI 288 - ITAT, PUNE] , relied upon Decision in favour of assessee. - ITA No. 1029/PN/2011 - - - Dated:- 14-9-2012 - Shri Shailendra Kumar Yadav Judicial Member And Shri R.K. Panda Accountant Member For the Assessee : Sri Sunil Ganoo For the Department : Mrs. Ann kapthuama ORDER PER R.K. PANDA, AM : This appeal filed by the revenue is directed against the order dated 31-05-2011 of the CIT(A)-Aurangabad relating to Assessment Year 2008-09. 2. Facts of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee credit cooperative society is entitled to deduction u/s.80P(2)(a)(i) of the Act. He accordingly directed the AO to allow deduction u/s.80P(2)(a)(i) to the society. 3.1 Aggrieved with such order the CIT(A) the revenue is in appeal before with the following grounds : 1. On the facts and in the circumstance of the case, and considering the status and nature of business of the Appellant society, the CIT(A) Aurangabad has erred in treating assessee as cooperative society instead of Primary Cooperative bank referred into section 5(cci) of banking regulative Act, 1949 referred to explanation below sub section (4) of Section 80P. 2. On the facts and in the circumstance of the case, and considering the status and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... velopment bank. Explanation For the purpose 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. 5. It is to be mention here that up to A.Y. 2006-07, any Co-operative Society which was engaged in the business of carrying on banking was eligible for deduction in respect of the whole of the amount of prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Act is to be considered. In the opinion of the A.O, as the nature of the activities of the assessee Credit Society are analogous to the banking activities, which are more specifically describe in the Banking Regulation Act and hence, assessee partakes the character of Primary Co-operative Bank as defined in clause (ccii ) of the Banking Regulation Act 1949. Clause (cci ) of Sec 5 of BR Act defines the Co-operative Bank means State Co-operative Bank, Central Co-operative Bank and Primary Co-operative Bank. 7. The primary co-operative Bank is treated as Co-Operative Bank in view of Cl. (cci) of sec 5 of the B. R. Act, 1949. Definition of Primary Co-operative Bank is given in cl. (cci) of sec. 5 of B. R. Act, 1949, which reads a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of the Co-operative Credit Society is given in Clause (ccii) of Sec. 5 which reads as under : co-operative credit society means a Co-operative Society, the primary object of which is to provide financial accommodation to its members and includes a cooperative land mortgage bank; 9. The Banking Regulation Act, 1949 defines of Co-operative bank in cl.(cci) of sec. 5 (as inserted by sec. 56 of the said Act) and Co-operative Credit Society is not included but its identity is kept separate by way of independent definition in view of Clause (ccii) of Sec. 5 of the Banking Regulation Act which defines what is meaning of Credit Co-operative Society . On plain reading of the Banking Regulation Act, 1949, now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -operative Bank nor it can be said as a Primary Co-operative Bank within the meaning of Banking Regulation Act, 1949. Hence, the assessee being a Co-operative Credit Society is entitled for deduction u/s. 80 P(2)(a)(i) of the Act. We accordingly uphold the order of the Ld CIT(A). 10. In result, revenue s appeal is dismissed. 6. Respectfully following the decision of the coordinate Bench of the Tribunal cited (Supra) and in absence of any contrary material brought to our notice against the order of the Tribunal we hold that the cooperative society is distinct and separate from the cooperative bank and cannot be said as a primary cooperative bank within the meaning of Banking Regulation Act, 1949. Therefore, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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