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TMI Blog2021 (1) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. 80P(2)(d) of the Act. The AO is directed to allow deduction u/s. 80P as claimed by the appellant and assess the total income at Rs. Nil. Ground no. 1 is allowed of assessee. - ITA Nos. 4552/Mum/2019 - - - Dated:- 7-1-2021 - SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER For the Appellant : Shri Gurbinder Singh, DR For the Respondent : Shri Kumar Kale, AR ORDER PER PAVAN KUMAR GADALE: The revenue has filed the appeal against the order of the Commissioner of Income Tax (Appeals) - 32, Mumbai, passed u/s. 143(3) and 250 of the Income Tax Act, 1961. 2. The brief facts of the case are that the assessee is cooperative credit society carrying on business of banking and filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd denied the claim of deduction u/s 80P of the Act and determined the total income of ₹ 1,47,61,100/- and passed the order u/s 143(3) of the Act dated 06.12.2016. 3. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). In the appellate proceedings, the Ld.CIT(A) considered the grounds of appeal, findings of the A.O and the submissions of the assessee duly supported with the judicial decisions and the financial statements. The Ld.CIT(A) has granted relief relying on the judicial decisions and the assessee s own case for earlier assessment year, were the Hon ble Tribunal has dismissed the revenue appeal. Aggrieved by the Ld.CIT(A) order, the revenue has filed an appeal before the Hon ble Tribunal. 4. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ublic, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise and the appellant is not receiving deposits of money from the public. Thus, the first comdition of Section 56(c)(ccv) of Part V of the Banking Regulation Act 1949 i.e. the primary object for principal business of which is the transaction of banking business is not fulfilled by the appellant. Further, the appellant society does not have a banking license under the Banking Regulation Act to conduct any business of banking. Therefore, the AO is not correct in holding that the appellant is a Co-operative Bank and not eligible for deduction ti Js. 80P in view of the provisions of section 80P(4) of the Act. In this regard reliance is placed on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Souharda Credit Cooperative Ltd. vs. ITO [2015] 55 taxmann.com 447 (Karnataka). The Hon'ble High Court had examined, the issue in the context of interest earned on deposits kept with banks and after distinguishing the decision in the case of Tatgar Cooperative Sales Society Ltd., Vs. ITO [2010] 322 ITR 283(SC) on facts, it was held that such interest income is attributable to the business of providing credit facilities to the members, and hence, it was deductible u/s.80P(2)(a)(i). Further, the decision in Tumkur Merchants' case (supra) has been followed by the jurisdictional Tribunal in the following cases: Jaoli Talulca Sahakari Patpedhi Maryadit vs. ITO [2017] 83 taxmann. corn 247 (Mumbai) Yashomandir Sahakari Patpedh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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