2015 (1) TMI 1295

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....ue has filed an Affidavit citing reasons for delay in filing of the appeal. After perusal of same, we are satisfied that the delay in filing of the appeal is not intentional or willful. The delay in filing of the appeal is condoned and the appeal is admitted to be heard on merits. 3. The only issue raised by the Revenue in appeal is that the Commissioner of Income-tax(Appeals) has erred in holding that the assessee is eligible to claim deduction under sec.80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). 4. Shri P. Radhakrishnan, representing the Department, submitted that the assessee is a co-operative bank and not a co-operative society as held by the First Appellate Authority. The ld. DR further conte....

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....al co-operative credit society registered under the Tamil Nadu Co-operative Societies Act, 1961. The assessee society was established in the year 1968 and the members of the society are agriculturists. The primary activity of the society is accepting deposits from its members and advancing loans to its members. The assessee has been enjoying the benefit of deduction u/s.80P till the amendment was brought in by the Finance Act, 2006 vide which sub clause 4 was inserted in section 80P. After the amendment, the benefit of 80P was denied to the co-operative banks. The sub-section 4 of section 80P is re-produced herein below: "(4) the provisions of this section shall not apply in relation to any co-operative bank other than a primary agric....

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....perative banks' and 'co-operative societies' on various parameters, the Tribunal came to the conclusion that the activities of both the organizations and the compliances to be made under various Acts for both the organizations are varied. The sub-section 4 to section 80P is applicable only to cooperative banks and not to credit co-operative societies. The decision of the Bangalore Bench of the Tribunal in the case of ACIT Vs. M/s.Balgalore Commercial Transport Credit Cooperative Society Ltd., (supra) has subsequently been followed by the co-ordinate bench of the Tribunal in the cases of ITO Vs.The Kasipalayam Primary Agricultural Co-operative Bank Ltd., (supra) and ITO Vs. M/s. Yeswanthpur Credit Credit Cooperative Society Ltd., (supra).....

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.... other words, continued to hold such entity as eligible for deduction. However, the issue has been considerably simplified by virtue of CBDT circular No.133 of 2007 dated 9.5.2007. Circular provides as under:- "Subject: Clarification regarding admissibly of deduction under section 80P of the Income-Tax Act, 1961. 1. Please refer to your letter No. DCUS/30688/2007, dated 28.03.2007 addressed to Chairman, Central Board of Direct Taxes, on the above given subject. 2. In this regard, I have been directed to state that subsection (4) of section 80P provides that deduction under the said section shall not be allowable to any cooperative bank other than a primary agricultural credit society or a primaryco-operative agricultural and rural ....