9911796707
TMI Blog2024 (10) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... out first confronting the Appellant. Therefore, the order passed by the CIT(A) dismissing the appeal as being barred by limitation in set aside. Deduction u/s 80P(2)(a)(i) - income of the Co-operative Credit Societies attributable to providing credit facilities to the members - Issue raised in the present appeal, on merits, stands decided in favour of the Assessee by the judgment of Mavilayi Service Co-operative Bank Ltd. [ 2021 (1) TMI 488 - SUPREME COURT] wherein it was held that the provision of Section 80P(4) of the Act are attracted only in case of co-operative society holding a banking license issued by the Reserve Bank of India (RBI). It is not the case of the Revenue that the Assessee is either registered with RBI under Banking Regu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 144 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act']. 2. The appellant has raised following grounds of appeal : "1. On the facts and in the circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) was not justified in sustaining the additions made by the Assessing Officer by disallowing the bonafide claim of deduction a/s 80P(2)(a)(il of the Income Tax Act, 1961 in respect of income attributable to providing credit facilities to the members. 2. On the facts and in the circumstances of the case and in law the Ld. Assessing Officer and Ld. Commissioner of Income Tax (Appeals). National Faceless Appeal Centre (NFAC) has wrongly relied on the Hon'ble Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooperative Societies Act, 1960 and engaged in providing credit facilities to its members. It is stated that the Appellant does not undertake any business with a person other than its own members. In the return of income for the Assessment Year 2020-2021, filed on 28/11/2020, the Appellant declared income of INR. 2,71,810/- after claiming deduction of INR. 26,14,333/- under Section 80P of the Act in respect of income derived from providing credit facilities to its members and interest/dividend received from co-operative banks. However, the while framing assessment vide Assessment Order, dated 26/09/2022, passed under Section 143(3) read with Section 144 of the Act, the Assessing Officer denied deduction claimed by the Appellant under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation of delay in filing of appeal, the appellant has also filed an affidavit dated 23.02.2023 sworn by one Mr. Sandeep Baban Wadkar in the capacity of Manager of the co-operative society. In the said affidavit the following reason has been given for delay in institution of appeal - "We are vernacular educated and having limited knowledge of Income tax provisions. We were not aware legal intricacies of the matter and income tax proceedings and subsequently followed by the Assessment order passed by the Assessment Unit, Income tax department. I further state that due to ill health of the Promoter and Managing director of the Society there is delay in filing the Income tax Appeal. I further state and declare that when we realized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in-charge was not keeping good health or that such person was educated in vernacular and had limited knowledge of income tax laws. In the case of Collector of Land Acquisition Vs. Mst. Katiji & others AIR 1987 1353 (SC), the Hon'ble Supreme Court has emphasized that substantial justice should prevail over technical considerations and held that the requirement that every day's delay must be explained does not mean that a pedantic approach should be taken. According to the Hon'ble Supreme Court the aforesaid doctrine must be applied in a rational common sense and in pragmatic manner, and more so in circumstances where a litigant does not stand to benefit by lodging the appeal late. In the present case we are of the view that the Appellant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax-17, Mumbai Vs, M/s Annasaheb Patil Mathadi Kamgar Sahakari Patpedhi Maryadit [Civil Appeal No. 8719/2022: dated 20/04/2023]. Thus, as regards profits and gains earned by the Appellant from the business of provide credit facility to its members, the Appellant would be entitled to deduction under section 80P2(a)(i) of the Act. Whereas in respect of interest received from Co-operative Bank, the Appellant would be entitled to deduction under Section 80P2(d) of the Act since a co-operative bank continues to be a co-operative society as held in the case of NPC Employees Cooperative Credit Society Limited Vs. ITO Ward 27(2)(1) [ITA No. 89/Mum/2024, dated 27/06/2024] cited in behalf of the Appellant during the course of hearing. We note i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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