2014 (4) TMI 355

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 2. In both the appeals, the Revenue has agitated the decision of the Ld.CIT(A) in directing the AO to allow the deduction claimed by the assessee u/s 80P of the Act. 3. Briefly stated, the assessee, a co-operative credit society, during the A.Y. 2007-08 had shown a gross total income of Rs.39,92,758/- and claimed deduction of the same u/s 36(1)(viia)(b) and thereby declared the total income at NIL. However, in the assessment framed, the AO noticed that the assessee calculated deduction u/s 36(1)(viia)(b) at Rs.89,35,166/- and claimed at Rs.36,93,301/-. In the P&L A/c, the assessee made a provision of Rs.5,60,000/- for bad and doubtful debts during the previous year. According to the AO, the assessee is eligible for deduction of Rs.5....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has been functioning as a cooperative bank and by virtue of section 80P(4), the assessee is not entitled for the benefit of section 80P and also the assessee is not coming within the purview of primary agricultural society or primary co-operative agricultural and rural development bank. It is the case of the assessee that it is not a cooperative bank but only a cooperative society to which clause (4) of section 80P is not applicable. 4.2 In this connection, it is pertinent to mention that the assessee has brought on record before the lower authorities, the letter of the CBDT bearing No. F. No. 133/06/2007-TPL dated 09.05.2008 addressed to the Delhi Urban T&C Society Ltd., stating that for the purposes of subsection 4 of section 80P, 'co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Society Ltd and the decision of the Tribunal in the case of DCIT Vs. Jayalakshmi Mahila Vividodeshagala Souharda Sahakari Ltd. [2012] 137 ITD 163. 4.4 In addition to the aforementioned discussion, the distinction between cooperative society registered under the Banking Regulation Act 1949 and the cooperative society registered under the Maharashtra State Cooperative Societies Act 1960 as brought out by the Ld.CIT(A) on the basis of the submission of the assessee is extracted hereunder: - The above distinction makes it very clear that the assessee is not a co-operative bank for the purposes of section 80P(4) of the Act. 4.5 As regards the claim of the revenue that for the Assessment Year 2007-08, the assessee has not claimed the ded....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent 1 SI Co-operative societies 1 The Co-operative Credit Societies are registered under Maharashtra State Co- operative Societies Act, 1960 and governed, regulated, administered and supervised by the Registrar of the Co- operative Societies, Government Maharashtra. Of 2 Co-operative Societies are classified as resource/thrifts Societies in the certificate of registration issued by Registrar of Co- operative Society. 3 Co-operative Credit Societies can accept deposits and advance loans only to the members. Hence the business activities are restricted to members and hence it can be termed as a mutual association/self help group. Co-operative Banks are registered under Co-operati....