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of <h1>Tribunal Remands Assessment for Detailed Review on Section 80P Eligibility Criteria</h1> <h3>M/s. Millennium Credit Cooperative Society Ltd, Versus Income-tax Officer, Ward -5 (2) (3), Bengaluru</h3> M/s. Millennium Credit Cooperative Society Ltd, Versus Income-tax Officer, Ward -5 (2) (3), Bengaluru - TMI Issues:- Disallowance of eligible deduction under section 80P for assessment years 2013-14 and 2014-15- Classification of the assessee as a cooperative bank under section 80P(4)- Denial of deduction under section 80P(2)(a)(i) for interest income- Verification of the assessee's status as a cooperative society- Requirement of banking license for claiming deduction under section 80PAnalysis:For the assessment years 2013-14 and 2014-15, the assessee contested the denial of eligible deduction under section 80P. The Assessing Officer classified the assessee as a cooperative bank under section 80P(4), disallowing the deduction for interest income. The CIT (A) upheld this decision based on the activities falling within the realm of a cooperative bank. The Tribunal noted the contention that the assessee lacked a banking license, citing the Supreme Court's judgment in Citizen Cooperative Society. The Tribunal directed a remand to the AO to verify the activities and obtain a certificate from the RBI to confirm non-applicability of banking regulations.Regarding the status of the assessee as a cooperative society, the Tribunal referred to previous cases where conversion between cooperative types was possible. Citing the Udaya Souharda Credit Co-operative Society case, the Tribunal remanded the issue back to the AO for further examination. The Tribunal emphasized the need to consider the mutuality aspect in determining eligibility for deduction under section 80P.In conclusion, the Tribunal allowed the assessee's appeals for statistical purposes, based on the observations and directions provided in the judgment. The matter was remanded back to the AO for detailed examination in line with relevant legal principles and previous decisions, ensuring a fair assessment of the assessee's eligibility for deductions under section 80P.
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