2016 (5) TMI 1521

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....f income for the relevant assessment year declaring total income of Rs. "Nil". After the scrutiny, the AO determined the gross total income of the assessee at Rs. 7,24,81,010/-disallowing deduction of Rs. 1,39,23,333/- claimed under section 80P(2)(d) of the Income Tax Act, 1961 (in short the Act) as well as Rs. 5,85,57,676/- claimed under section 80P(2)(a)(i) of the Act. The AO examined the assessee's claim of deductions aforesaid in the light of the provisions of section 80P (4) of the Act, introduced w.e.f. 01.04.2007, and made disallowances aforesaid holding that the assessee was carrying on banking business. 3. The assessment order was challenged by the assessee before the first appellate authority, inter alia, on the ground that the....

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....aw, the Ld. CIT(A) has erred in not considering the fact that amendment to Sec.80P(4) inserted w.e.f. 1.4.2007 by Finance Act, 2006 clearly bans all the co-operative banks other than primary agricultural credit society or a primary co-operative agricultural and rural development banks from claiming exemption under this section". 6. Before us, the Ld. DR relying upon the assessment order submitted that, the CIT(A) has wrongly deleted the addition made by the AO amounting to Rs. 5,85,57,676/- under section 80P(2)(a)(i) and Rs. 1,39,23,333/- under section 80P(2)(d) of the Act ignoring the fact that the assessee was carrying on the banking business and the amendment to section 80P(4) introduced w.e.f. 01.04.2007 by the Finance Act, 2006 clea....