TaxTMI 
TaxTMI 
2015 (9) TMI 177
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....he claim of deduction made by the Society U/s 80P(2)(a)(i) of the Act. The claim of deduction so confirmed/denied, being totally contrary to the provisions of law and facts kindly be allowed as claimed. 1.2 The ld CIT(A) erred in law as well as on the facts of the case in further confirming invoking and misinterpreting the provisions of Sec. 80P(4) of the Act and consequently, denying the claim of deduction made by the Society U/s 80P(2)(a)(i) of the Act. The claim of deduction so confirmed/denied, being totally contrary to the provisions of law and facts kindly be allowed as claimed. 2. The A. O. & ld. CIT(A) further erred in law as well as on the facts of the case in charging interest U/s 234A, 234B, 234C and 234D of the Act and as ....
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....ment bank. The assessee submitted that the assessee is covered under the definition of primary cooperative agricultural and rural development bank vide its letter dated 19/09/2011 but vide letter dated 23/09/2011, it was claimed that the assessee is a primary agricultural credit society and is therefore entitled for deduction U/s 80P of the Act. The ld Assessing Officer considered the definition of primary agricultural credit society as given in Bank Regulation Act, 1949, which is reproduced as under:- (1) the primary object or principal business of which is to provide financial accommodation to its members for a agricultural purposes or for purposes connected with agricultural activities (including the marketing of crops); and (2) th....
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....d as per Section 67 of the Rajasthan Cooperative Society Act, 2001 and therefore, is not primarily engaged in providing loans for agricultural activities and rural development. The ld Assessing Officer also reproduced the Board's circular dated 20/09/2010 on page 4 of assessment order. It is further held that after insertion of Sub- Section (4) of Section 80P only primary agricultural credit society of primary cooperative agricultural and rural development bank are entitled for deduction U/s 80P of the Act. Further the definition of cooperative bank and primary agricultural credit society primary cooperative agricultural and rural development bank has also been defined in the Act just below the Sub-section (4) of Section 80P. The assessee i....
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....a cooperative society and is engaged in providing credit facility to its members and deduction U/s 80P(2) had all alone been granted on that basis only. The assessee is neither a cooperative bank nor a primary cooperative bank nor even a regional rural bank.. The assessee is not engaged in the business of banking inasmuch as it has not obtained the license required U/s 22 read with 56(a) of banking Regulation Act for doing such business from the NABARD or Reserve Bank of India. Thus the assessee is covered by Section 80P(2)(a)(i) of the Act. Sub-section (4) of Section 80P was inserted by the Finance Act, 2006 w.e.f. 01/4/2007 i.e. for A.Y. 2007- 08. However, despite amendment, the Assessing Officer allowed the deduction U/s 80P(2)(a)(i) as ....
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.... relied on the decision of Hon'ble Gujarat High Court decision in the case of CIT Vs. Jafari Momin Vikas Cooperative Credit Society Ltd. 362 ITR 331 wherein the Assessing Officer made similar addition U/s 80P of the Act and exclusion provided in sub-section (4) of Section 80P would not apply. He further relied on the decision of Hon'ble Karnataka High Court in the case of CIT Vs. Shree Biluru Gurubasave Pattina Sahkari Sangh Niyamitha in ITA No. 5006/2013 dated 05/02/2014 wherein assessee's status was cooperative society and not a cooperative bank and exemption from the payment of tax U/s 80P(2)(a)(i) was held justified by the Hon'ble Court. The other case laws relied by the ld AR are as under:- (i) CIT Vs. Bangalore Credit Cooperative S....