TaxTMI 
TaxTMI 
2019 (1) TMI 1012
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....ect in INR 1. That the impugned order is opposed to facts and law in so far as it is pre-judicial to the interests of the Appellant. General Ground 2. That the Ld.CIT(A) erred in confirming the order of the Ld.AO denying the deduction under section 80P of the Income Tax Act and in doing so he failed to appreciate the fact that the Assessee is a co operative society without a banking license and is not at all involved in the banking activity and is as such eligible for deduction under 80P(2). 7,76,489 3. That the Ld. CIT(A) misdirected himself in applying the ratio of Citizen Co-operative Society Ltd. Hyderabad vs. ACIT Hyderabad (SC) inasmuch as the Appellant is engaged in the business of extending credit solely to its members. same a....
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.... the relief sought for." 3. It was submitted by ld. AR of assessee that in the present appeal, the decision is required on two aspects. He submitted that the first aspect is this as to whether the assessee is a co-operative bank or not. He submitted that the authorities below has followed the judgment of Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT as reported in 397 ITR 1 and held that the assessee is a co-operative bank and therefore, not eligible for deduction u/s. 80P. He submitted that as per this judgment of Hon'ble Apex Court, if the assessee is not holding any license from RBI to do banking business, then the assessee cannot be considered as co-operative bank. At this juncture, the bench....
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....f these two judgments and if it is found that the facts of the present case are in line with the facts in the case PCIT and Another Vs. Totagars Co-operative Sale Society Ltd. (supra) then the issue should be decided against the assessee and if it is found that the facts of the present case are in line with the facts in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. vs. ITO (supra) then only the issue can be decided in favour of the assessee and since there is no finding of any of the authorities below on this aspect, this issue also has to go back to the file of AO for fresh decision after examining the facts of present case in the light of these two judgments of Hon'ble Karnataka High Court. In reply, ld. AR of assessee....