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TMI Blog2023 (6) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... uction u/s 80P(2)(a)(i) of the Act. We note that the AO didn t had the benefit of the decision rendered by the Hon ble Apex Court in the case of Malvilayi Service Co-operative Bank Ltd. [ 2021 (1) TMI 488 - SUPREME COURT ] Therefore, in the interest of justice and equity, the issue of claim for deduction u/s 80P(2)(a)(i) of the Act is restored back to file of AO with a direction to examine afresh the claim of assessee in the light of decision in Malvilayi Service Co-operative Bank Ltd (supra). Therefore, the impugned order of Ld. CIT(A) is set aside, and issue is restored back to the file of the AO and the AO is directed to decide the claim of the assessee in respect of deduction claimed u/s 80P(2)(a)(i) of the Act accordingly. X X X X Extracts X X X X X X X X Extracts X X X X ..... on u/s 80P of the Act. Even though the Ld. CIT(A) referred to the Hon'ble Supreme Court decision in the case of Malvilayi Service Co-operative Bank Ltd. & Ors Vs. CIT (431 ITR 1) to uphold the action of AO denying deduction u/s 80P of the Act to the assessee, according to the assessee's contention, the Ld. CIT(A) has decided the grounds of appeal raised by it without properly appreciating the facts pertaining to the assessee vis-à-vis the ratio laid by the Hon'ble Supreme Court in the case of Malvilayi Service Co-operative Bank Ltd. (supra). According to assessee, the relevant facts as well as the ratio of Hon'ble Apex Court in Malvilayi (supra) have not been correctly considered by Ld. CIT(A) and so erred in dismissing the grounds r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and added the same in the total income of assessee. On appeal, the Ld. CIT(A) upheld the action of AO. We note the Ld. CIT(A) while considering the appeal of the assessee, though has cited the decision of the Hon'ble Supreme Court in the case of Malvilayi Service Co- operative Bank Ltd. (supra), has not appreciated the ratio of the decision vis-à-vis the facts pertaining to the case in hand. It is trite that the entire judgment should be read as a whole and the ratio decidendi has to be clearly understood to give effect to the law laid by the Hon'ble Supreme Court. According to the assessee, the issue raised by the AO (deduction u/s 80P of the Act) stands clearly covered by the order of the Hon'ble Supreme Court in the case of Malv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reasonably, and if there is ambiguity, in favour of the assessee. A deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication, as is sought to be done by the Revenue in the present case by adding the word "agriculture" into section 80P(2)(a)(i) when it is not there. Further, section 80P(4) is to be read as a proviso, which proviso now specifically excludes co-operative banks which are co-operative societies engaged in banking business i.e. engaged in lending money to members of the public, which have a licence in this behalf from the RBI. Judged by this touchstone, it is clear that the impugned Full Bench judgment is wholly incorrect in its reading of Citizen Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on reads as under: "2. (n) 'Member' means a person who joined in the application for registration of a society or a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws for the time being in force but a reference to 'members' anywhere in this Act in connection with the possession or exercise of any right or power or the existence or discharge of any liability or duty shall not include reference to any class of members who by reason of the provisions of this Act do not possess such right or power or have no such liability or duty;"" Considering the definition of 'member' under the Kerala Act, loans given to such nominal members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra). Therefore, in the interest of justice and equity, the issue of claim for deduction u/s 80P(2)(a)(i) of the Act is restored back to file of AO with a direction to examine afresh the claim of assessee in the light of the Hon'ble Apex Court decision in Malvilayi Service Co-operative Bank Ltd (supra). Therefore, the impugned order of Ld. CIT(A) is set aside, and issue is restored back to the file of the AO; and the AO is directed to decide the claim of the assessee in respect of deduction claimed u/s 80P(2)(a)(i) of the Act as per the ratio laid by the Hon'ble Apex Court Malvilayi Service Co- operative Bank Ltd (supra) un-influenced by the observation made by the Ld. CIT(A) or his earlier predecessor AO and pass a speaking order. Needl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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