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TMI Blog2017 (10) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... round that they are cooperative societies covered by section 80P(1) read with Boards Circular No. 319 dated 11-1-1982. It is, therefore, reiterated that Regional Rural Banks are not eligible for deduction under section 80P of the Income-tax Act, 1961 from the assessment year 2007-08 onwards. Further more, the Circular No. 319 dated 11-1-1982 deeming any Regional Rural Bank to be cooperative society stands withdrawn for application with effect from assessment year 2007-08. The field officers may take note of this position and take remedial action, if required. As the Ld. CIT appeal has decided this issue without considering the above circular, we set aside the whole issue back to the file of the Ld. CIT appeal to verify whether the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08." 3. Briefly stated the facts are that assessee is engaged in the business of banking. The assessee derives income from house property. The in the profit and loss account. The assessee is credited dividend income of ₹ 8 607600 from UP cooperative bank Ltd as well as Indian farmers and fertilisers cooperative Ltd., The assessee filed its return of income for ₹ 1 060 8800 on 29/10/2007. The return of income was further revised on 31/10/2008 to ₹ 2001200/-. The reason for revision was that the dividend income credited to the profit and loss account of ₹ 8 607600 was claimed as exempt and not chargeable to tax. The Ld. assessing officer picked up the case of the assessee for scrutiny and held that the claim of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the assessee is eligible for deduction under section 80 P of the income tax act. As the dividend received by the assessee falls under the business of the banking and therefore the claim of the assessee is correctly allowed. 7. We have carefully considered the rival contention as well as also perused the orders of the lower authorities. The simple issue raised before us is whether the assessee is eligible for deduction under section 80 P of the income tax act or not for assessment year 2007 - 08. Circular No. 6/2010, dated 20/09/2010 covers the above issue as under:- SECTION 80P OF THE INCOME-TAX ACT, 1961 - DEDUCTION IN RESPECT OF INCOME OF CO-OPERATIVE SOCIETIES - CLARIFICATION REGARDING ELIGIBILITY OF DEDUCTION UNDER SECTION 80P TO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 2007-08 onwards. 4. It has been bought to the notice of the Board that despite the amended provisions, some Regional Rural Banks continue to claim deduction under section 80P on the ground that they are cooperative societies covered by section 80P(1) read with Boards Circular No. 319 dated 11-1-1982. 5. It is, therefore, reiterated that Regional Rural Banks are not eligible for deduction under section 80P of the Income-tax Act, 1961 from the assessment year 2007-08 onwards. Further more, the Circular No. 319 dated 11-1-1982 deeming any Regional Rural Bank to be cooperative society stands withdrawn for application with effect from assessment year 2007-08. The field officers may take note of this position and take remedi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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