Co-op Society entitled to Sec 80P deduction, not a bank. Tribunal dismisses Revenue appeal.

The Tribunal upheld the CIT(A)'s decision to allow the deduction u/s 80P for the Co-operative Society, determining it did not fall under the restriction of section 80P(4) as it was not a cooperative bank but a cooperative society. The Tribunal distinguished between cooperative societies and cooperative banks, emphasizing the society did not require a banking license from the Reserve Bank of India. Consequently, the Tribunal dismissed the Revenue's appeal and the Cross Objection raised by the assessee, affirming the CIT(A)'s order and allowing the deduction u/s 80P for the Co-operative Society for AY 2010-2011.

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Issues:
Appeal against CIT(A) order for AY 2010-2011 regarding deduction u/s. 80P of the IT Act.

Analysis:
1. The appeal was filed by the Revenue against the CIT(A)'s order for AY 2010-2011 concerning the allowance of deduction u/s. 80P of the IT Act.
2. The assessee, a Co-operative Society registered under the Maharashtra Co-operative Societies Act 1960, filed a return declaring income at Nil after claiming a deduction u/s 80P amounting to Rs. 1,69,89,044. The assessment completed under section 143(3) of the IT Act denied the deduction.
3. The CIT(A) allowed the deduction after detailed observation, following the order of the ITAT-Pune Bench in the assessee's own case for AY 2009-2010.
4. The Tribunal in the earlier case held that the assessee, a cooperative credit society, does not fall within the restriction of section 80P(4) of the Act, as it is not a cooperative bank but a cooperative society.
5. The Tribunal noted that the cooperative society did not require a license from the Reserve Bank of India to carry on banking business, distinguishing it from cooperative banks.
6. The Tribunal also highlighted the distinction between cooperative societies and cooperative banks under various provisions, emphasizing that the cooperative society in question did not meet the criteria of a cooperative bank under section 80P(4) of the Act.
7. Citing previous judgments and legal provisions, the Tribunal upheld the CIT(A)'s decision to allow the deduction u/s 80P for the assessee, as it was not classified as a cooperative bank.
8. The Tribunal dismissed the Revenue's appeal and rendered the Cross Objection raised by the assessee as infructuous, as it supported the CIT(A)'s conclusion.
9. Ultimately, both appeals were dismissed, affirming the CIT(A)'s order allowing the deduction u/s 80P for the assessee for AY 2010-2011.

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