TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 557
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.... facilities to its Members. The assessee filed its return of income for the AY. 2009-10 on 30-03-2010 declaring 'NIL' income. The assessee has claimed deduction u/s.80P(2) of the Income Tax Act, 1961 (herein after referred to as 'the Act'). The case of the assessee was selected for scrutiny and notice u/s. 143(2) was issued to the assessee. During the course of assessment proceedings, the Assessing Officer after examining the activities of the assessee held that the assessee is carrying banking activities. The assessee is providing loan facilities under various heads viz. Jewel Loan, KCC Jewel Loan, Crop Loan, Housing Loan, Nonforming Sector Loan etc. The assessee is not only providing agricultural credit facilities but is also advancing co....
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....hemently opposed the order of the CIT(Appeals) and submitted that earlier the name of the assessee was Veerakeralam Primary Agricultural Co-operative Credit Society and after the amendment to Section 80P by insertion of sub-section 4 by the Finance Act, 2006, w.e.f. 01-04-2007, the assessee changed its name to Veerakeralam Primary Agricultural Co-operative Credit Society. However, the nature of activities and business of the assessee remains the same. The ld.DR pointed out that, in letter dt.08-11-2012 submitted by the assessee before Assessing Officer, the assessee has admitted the fact that the main source of income of the assessee is from the business of Banking. In view of the nature of activities being carried out by the assessee as li....
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.... a co-operative society under the Tamil Nadu Co-operative Societies Act, 1961 and is carrying on its activities as per the byelaws registered with the Registrar of the Co-operative Societies. The amendment brought in by the Finance Act, 2006 with the insertion of sub-section 4 to Section 80P of the Act does not debar Primary Agricultural Credit Societies from claiming deduction u/s.80P of the Act. The ld.AR in order to support his submissions relied on the following decisions of the Tribunal: I. ACIT Vs. M/s.Balgalore Commercial Transport Credit Co-operative Society Ltd., in ITA No.1069/Bang/2010 (AY.2007-08) decided on 08-04-2011. II. ITO Vs. M/s. Yeswanthpur Credit Co-operative Society Ltd., in ITA No.737/Bang/2011 (AY.2007-08) decid....
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....nes Co-operative Bank, Primary Agricultural Credit Society and Primary Co-operative Agricultural and Rural Development Bank. The same reads as under: Explanation.-For the purposes of this sub-section,- (a) "co-operative bank" and "primary agricultural credit society" shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949); (b) "primary co-operative agricultural and rural development bank" means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.] From the provisions of sub-section 4 of section 80P and the Explanation to section 80P, it is evident tha....
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....Vikas Co-op. Credit Society Ltd.,(supra) wherein the Hon'ble High Court after taking into consideration the CBDT Circular No.133/07 has held that sub-section 4 section 80P will not apply to assessee which is not a co-operative bank. The relevant extract of the order of the Hon'ble High Court is reproduced herein below: "5. Assessing Officer held that by virtue of section 80P(4), the respondent assessee would not be entitled to benefits of deduction under section 80P. CIT(Appeals) as well as the Tribunal reversed the decision of the Assessing Officer on the premise that the respondent assessee not being a bank, exclusion provided in sub-section(4) of section 80P would not apply. This, irrespective of the fact that the respondent would not ....
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....nking Regulation Act, 1949. 3. In part V of the Banking Regulation Act, "Co-operative Bank" means a State Co-operative bank, a Central Cooperative Bank and a primary Co-operative bank. 4. Thus, if the Delhi Co op Urban T & C Society Ltd. does not fall within the meaning of "Co-operative Bank" as defined in part V of the Banking Regulation Act, 1949, subsection(4) of section 80P will not apply in this case. 5. The issues with the approval of Chairman, Central Board of Direct Taxes." 7. From the above clarification, it can be gathered that subsection( 4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift & Credit Society Ltd. was under consideration. Ci....