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TMI Blog2021 (4) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... iety is not a primary co-operative bank, hence, it would not be hit by the provisions of Sec.80P(4) as had been made available on the statute vide the Finance Act, 2006 w.e.f 01.04.2007. Our said view is fortified by the fact that it is absolutely mandatory for a co-operative society to seek a licence from the Reserve Bank of India to form and operate as a co-operative bank. Further, a perusal of Circular No. 312 of the Reserve Bank of India reveals the process involved for conversion of a co-operative society into a primary co-operative bank. Admittedly, in the case before us as the assessee being a co-operative credit society is neither authorized nor had undertaken any of the banking business activities as are carried out by a primary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case and in law, the Ld. CIT(A) has erred in by granting relief of ₹ 73,91,380/- by deleting the addition made by the Assessing Officer . 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the fact that the deduction allowable earlier u/s.SOP of the Act in the case of Co-operative societies engaged in the banking has been withdrawn w.e.f. 2007-08 by Section 80P(4) except in the case of primary Agricultural Credit Society or a primary Co-operative Agricultural and Rural Development Bank. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not considering the fact that the Hon'ble Supreme Court has granted leave against High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of deduction raised by the assessee under Sec.80P of the Act. The A.O held a conviction that the assessee being a primary co-operative bank was hit by the provisions of Sec. 80P(4), and thus, was not eligible for claim of deduction under Sec. 80P(2)(a)(i). The contention of the assessee that it was a co-operative credit society providing banking/credit facilities only to its members and was not a co-operative bank providing banking/credit facility to the public at large did not find favour with the A.O. It was observed by the A.O that deduction allowable under Sec.80P(2)(a)(i) in the case of co-operative credit society engaged in carrying on the business of banking (co-operative banks) was withdrawn by the legislature in all its wisdo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es; and (iii) the bye laws of the co-operative society did not permitted admission of any other co-operative society as a member, therefore, it clearly fell within the category of a primary co-operative bank. In the backdrop of his aforesaid deliberations the A.O was of the view that the assessee being a primary cooperative bank would thus be hit by the provisions of Sec. 80P(4) of the Act and w.e.f A.Y 2008-09 would not be eligible for claim of deduction under the said section. On the basis of his aforesaid observations the A.O declined the claim of deduction of the assessee society under Sec.80P and assessed its income at ₹ 1,64,84,080/- . 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). The CIT(A) af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptance and lending of money was only from the members and not from the public thus, it could safely be concluded that the principal business or primary objective of the assessee co-operative credit society was not the business of banking. Further, it was observed by the CIT(A) that in the assessee‟s own case for A.Y 2012-13, his predecessor had vide an order dated 27.05.2016 held that as the assessee was not a co-operative bank, it was, thus, eligible for claim of deduction under Sec. 80P(2)(a)(i) of the Act. It was, further, observed by the CIT(A) that the order passed by his predecessor in the assessee‟s own case for A.Y 2012-13 was thereafter upheld by the Tribunal in ITA No. 4986/Mum/2016, vide its order dated 15.03.2018. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd operate as a co-operative bank. Further, a perusal of Circular No. 312 of the Reserve Bank of India reveals the process involved for conversion of a co-operative society into a primary co-operative bank. Admittedly, in the case before us as the assessee being a co-operative credit society is neither authorized nor had undertaken any of the banking business activities as are carried out by a primary co-operative bank, but had only provided financial assistance/credit to its members, therefore, it can safely be concluded that it cannot be held to be a co-operative bank. Apart from that, we find that as stated by the ld. A.R, and rightly so, the issue involved in the present appeal in squarely covered by the orders of the Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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