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TMI Blog2021 (5) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction under Section 80P of the Act. Accordingly, we confirm the order of CIT(A) and the appeal of Revenue is dismissed. - ITA NO. 2672/MUM/2019, CO NO. 38/MUM/2020 (in ITA NO. 2672/MUM/2019) - - - Dated:- 1-2-2021 - Shri Mahavir Singh, Vice President And Shri Manoj Kumar Aggarwal, Accountant Member For the Assessee : Shri Rajendra Kadrekar For the Revenue: Shri T.S. Khalsa ORDER PER MAHAVIR SINGH, VP : This appeal by the Revenue and cross-objection by the assessee are arising out of the order of CIT(A)-26, Mumbai in Appeal no. CIT(A)-26/IT- 349/2015-16 dated 08.02.2019. Assessment was framed by the Income Tax Officer-28(3)-2, Mumbai under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case and in law, the Assessing Officer has failed to follow the binding precedents and rule of consistency in view of the decision of Jurisdictional Hon'ble Bombay High Court and ITAT, Mumbai in Respondent's own case as well as other appellant Co-operative Credit Societies having similar nature of business as well as facts with the similar Grounds of Appeal and therefore, the appeal filed by the department is liable to be dismissed. 3. On the facts and circumstances of the case and in law, the Ld. Assessing Officer has erred in disallowing the bonafide claim of admissible deduction u/s. 82P(2)(a)(i) of the Income Tax Act, 1961 holding that the Assessee Society is a Co-operative Bank though the learned Assessing Officer h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee-society was doing business of accepting deposits and giving credit to its members like all other co-operative banks and credit societies. Hence, he quoted provisions of Sections 80P(4) and 2(24)(viia) of the Act and held that in view of these provisions, the assessee is carrying on banking business and disallowed the claim of deduction under Section 80P of the Act. Aggrieved, assessee preferred appeal before the CIT(A). 5. The CIT(A) noted that there is no dispute that assessee is a co-operative credit society carrying on business of accepting deposits and advancing loans from and to its members only. This fact has also been noted by the Assessing Officer in the assessment order wherein he stated, that, There is no dispute about the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of deduction under Section 80P of the Act and held that assessee is entitled for deduction. The observations of CIT(A) in para 7.3 of his order are reproduced hereunder. 7.3 The Hon'ble Gujarat High Court in its judgment dated 15-01-2014 in CIT Vs Jafari Momin Vikas Co-operative Credit Society Ltd (Tax Appeals No. 442, 443 and 863 of 2013) held that if the assessee is not a co-operative bank but a credit co-operative society, exclusion clause of sub-section (4) of section 80P would not apply. The High Court rejected the Revenue s contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not co-operative banks. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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