TaxTMI 
TaxTMI 
2016 (1) TMI 573
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....edit Society Ltd. (Tax Appeal No.442, 443 and 863 of 2013) order dated 15/01/2014 and also the decision of the Tribunal in ITO vs M/s Bharat Petroleum Employees Co-op Credit Society Ltd. (ITA No.6905/Mum/2013) order dated 28/04/2015. This factual matrix was no consented to be correct by the ld. DR, Shri Randhir Gupta. 2.1. We have considered the rival submissions and perused the material available on record. In view of the above we are reproducing hereunder the relevant portion from the order of the Tribunal dated 28/04/2015 (ITA NO.6905/Mum/2013) for ready reference:- "This appeal by the Revenue is directed against the order passed by the ld. CIT(A) - 33, Mumbai dated 02-09-2013 for the A.Y. 2010-11 in the matter of an order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 dated 16-01-2013. 2. In this appeal, the Revenue has raised the following grounds of appeal:- "1. On the facts and in the circumstances of the case and in law, the Ld CIT(A) erred in allowing assessee's appeal and allowing relief u/s 8OP of the Act in the case of the assessee credit co-operative Society. 2. On the facts and in the circums....
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....d. CIT(A) has since disagreed with the A.O. primarily on the ground that the assesse-society was not carrying out any banking facilities and that its activities were limited to its members only. The ld.CIT(A) also held that the activities of the assessee do not fall for consideration as banking activities as defined in Banking Regulation Act, 1949. In coming to such conclusion, the ld. CIT(A) has relied on the following decisions of the Tribunal:- (i) ITO, Wd 1(4) Pune v/ Jankalyan Nagri Sahakari Patsanstha Ltd 54 SOT 60(Pune)/24 taxmman.com 127(Pune) (2012) (ii) ITO v/s Jain Nagri patsanstha Ltd ITAT Pune Bench (2010) (iii) DCIT v/s Jayalakshmi Mahila Vivivdodeshagala Souharda Sahakari Ltd. 137 ITD 163(Panji) (2012) (iv) Sri Vasavi Multipurpose vs CIT ITAT Bangalore bench order dated 10,05.2015. 5. Accordingly, he directed the A.O. to allow deduction to the assessee under Section 80(P)(2)(a)(i) of the Act except to the extent of interest income earned by the assesse from SBI, Patiala. Against the aforesaid decision of the ld. CIT(A), Revenue is in appeal before us. 6. Before us the ld. Representative of the assessee, at the out....
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.... V of the Banking Regulation Act, 'co-operative bank means a State co-operative bank, a Central co-operative bank and a primary cooperative bank. 4. Thus, if the Delhi Co-op. Urban Thrift and Credit Society Ltd. does not fall within the meaning of 'co-operative bank' as defined in Part V of the Banking Regulation Act, 1949, sub-section (4) of section 80P will not apply in this case. 5. This is issued with the approval of the Chairman, Central Board of Direct Taxes." 7 From the above clarification, it can be gathered that sub-section (4) of section 80P will not apply to an assessee which is not a cooperative bank. In the case clarified by the Central Board of Direct Taxes, the Delhi Co-op. Urban Thrift and Credit Society Ltd. was under consideration. The circular clarified that the said entity not being a co-operative bank, section 80P(4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenue's contention that section 80P(4) would exclude not only the cooperative banks other than those fulfilling the description contained therein but also credit societies, which are not co-operative banks. In the pr....
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....mary cooperative agricultural and rural development bank. They did not want to extend the said benefit to a Co-operative bank which is exclusively carrying on banking business i.e. the purport of this amendment. Therefore, as the assessee is not a Co- operative bank carrying on exclusively banking business and as it does not possess a licence from Reserve Bank of India to carry on business, it is not a Co-operative bank. It is a Co-operative society which also carries on the business of lending money to its members which is covered under Section 80P(2)(a)(i) i.e. carrying on the business of banking for providing credit facilities to its members. The object of the aforesaid amendment is not to exclude the benefit extended under Section 80P(1) to such society. 8. Following the aforesaid judgments of the Hon'ble Gujarat High Court and Hon'ble Karnataka High Court and in the absence of any contrary decision brought to our notice by the ld. D.R., the impugned decision of the ld. CIT(A) is hereby affirmed. As a consequence, the appeal of the Revenue is dismissed. 9. Above decision was pronounced in the open court in the presence of both the parties at the conclusion of ....