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TMI Blog2018 (8) TMI 1919X X X X Extracts X X X X X X X X Extracts X X X X ..... ommon knowledge that in order to do the business of a co-operative bank, it is imperative to have a license from the Reserve Bank of India which the assessee does not possess. In the present case, before me also the assessee co-operative society is not licensed from the Reserve Bank of India to act as co-operative bank. Hence, as per the ratio emanating from the aforesaid Hon ble Apex Court in the case of the Citizen Co-operative Society Ltd [ 2017 (8) TMI 536 - SUPREME COURT] the assessee is not affected by the provisions of section 80P (4). Accordingly, confirm the order of the ld. Commissioner of Income Tax (Appeals) and hold that the assessee is entitled to deduction u/s 80P(2)(a)(i). X X X X Extracts X X X X X X X X Extracts X X X X ..... fulfills the condition laid down u/s 56 (c) (ccv) of part-V of the Banking Regulation Act, 1949 and being cooperative bank, not entitle for deduction u/s 80P (2)(a)(i) of the Act. The assessee challenged the assessment order before the Ld. CIT (A). The Ld. CIT (A) after hearing the assessee allowed the appeal holding as under: "5.2 From the facts of the instant case, it is quite clear that the appellant has limited himself to his own members. The appellant has not provided banking facilities either to the general public at large or even to the members of the society. Even the bye laws of the appellant do not provide for banking activities. Therefore facts of this case are not identical with any of the case laws relied upon by the AO. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t qualifies to be a bank. In the circumstances, I hold that the appellant is a cooperative society and not a cooperative bank and is therefore eligible for deduction u/s 80P(2)(a)(i). AO is accordingly directed to allow the deduction claimed by the appellant. Grounds 1, 2 are allowed in favour of the appellant." 3. Aggrieved by the order of Ld. CIT (Appeals), the revenue has preferred this appeal before the Tribunal on the following effective grounds:- 1. "On the facts and in the circumstances of the case and in law, the Ld. CIT (A) is justified in allowing deduction u/s 80P to the assessee even though assessee carries on the banking business and other business in the name of a credit cooperative society? 2. On the facts and in the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decisions rendered by ITAT, the Ld. CIT(A) has rightly decided the issue in the light of the decision of the ITAT. The Ld. counsel further submitted that since the assessee is a credit cooperative society and not a cooperative bank, the provisions of section 80P (4) will not apply, therefore, the assessee is entitled for deduction u/s 80P (2) (a) (i) of the Act. Since, the order of the Ld. CIT(A) does not suffer from any infirmity to interfere with, there is no merit in the appeal of the assessee. 6. We have perused the material on record in the light of the rival contentions. The only grievance of the revenue is that the Ld. CIT (A) has wrongly allowed deduction u/s 80P(2)(d) of the Act ignoring the fact that the assessee has been ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Bank)- Assessment years 2008-09, 2009-10, 2011-12- assessee, a co-operative society was registered under Co-operative Society Act- It was engaged in providing credit facilities to its members- It claimed deduction under section 80P(2)(a)(i), which was disallowed by Assessing Officer holding that assessee was a primary cooperative bank, therefore, hit by provisions of section 80P (4), which excluded benefit of section 80P- It was found that assessee- society was providing credit mainly to its members and its transactions with no0n- members were insignificant- Moreover, it was undisputed that bye laws of society did not allow any co-operative society to become its member- whether on facts, assessee was not a co-operative bank rather it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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