2017 (12) TMI 1420

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....idering the order that is proposed to be passed. 2. The Respondent is the Co-operative Society and had filed returns of income for the previous year 2011-2012, Assessment Year 2012-2013 on 30 September 2012 declaring total income as nil. The case of the Respondent was taken up for regular scrutiny and notice under Section 143(2) of the Income Tax Act was issued. The Assessing Officer, after considering the response of the Respondent and examining the bye-laws and held that the Respondent is not a Co-operative Credit Society but a Primary Co-operative Bank and, therefore, not eligible for deduction under Sections 80P(2)(a)(i) and 80P(2)(c)(ii) of the Act. The Assessing Officer after considering the other aspect held that total taxable inc....

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....of the Act restricts the benefits of deduction of income of Co-operative Society to the extent it is earned by providing credit facilities to its members. Therefore, to the extent the income earned is attributable to dealings with the non-members are concerned the benefit of Section 80P of the Act would not be available. In the above view of the matter, at the time when effect has been given to the order of this Court, the authorities under Act would restrict the benefit of deduction under Section 80P of the Act only to the extent that the same is earned by the appellant in carrying on its business of providing credit facilities to its member. Accordingly, the substantial question of law as framed is answered in the negative i.e. in favour ....

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....ld automatically apply to the cases of other societies, unless there is a primary factual adjudication. 7. The learned Counsel for the Respondent sought to contend that this exercise was done by the Assessing Officer and he has arrived at a certain position which itself will support the contention of the Respondent that the case of the Respondent falls within the ambit of the decision of this Court in Quepem Urban . However, the Income Tax Act provides for an appeal to the CIT(Appeals) under Section 143(3) of the Act. Further an appeal is provided to the Tribunal under Section 253 of the Act. The appeal before the CIT(Appeals) is an appeal on facts. The CIT(Appeals) has simply referred to the order of the Assessing Officer and to the dec....