2020 (10) TMI 1122

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....nsideration in this appeal is as to, whether the CIT(Appeals) was justified in allowing the claim of assessee for deduction u/s. 80P(2)(a)(i) of the Income-tax Act, 1961 [the Act]. 3. The assessee is a co-operative society which has as its objectives, advancing loans to agriculturists. In the return of income for AY 2012-13, the assessee claimed deduction of a sum of Rs. 11,24,62,612 u/s. 80P(2)(a)(i) of the Act, which provides for the following deduction: "Section 80P - Deduction in respect of income of Co-operative Societies: 80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with ....

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....y the aforesaid amendment, a new sub-section (viia) has also been inserted in clause (24) of Section 2 to provide that the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members shall be included in the definition of 'income'. 5. On appeal by the assessee, the CIT(Appeals) following his own order in assessee's own case for AY 2010-11, allowed the appeal of assessee by following the decision of the ITAT Bangalore Bench in the case of ITO Vs. Janapragathi Credit Co-operative Society Ltd., Bangalore in ITA No.1663/Bang/2012 dated 14.2.2014 wherein it was held that income derived by a co-operative society from providing credit facilities to its members is eli....

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.... of The Citizen Co-operative Society Ltd. Vs. ACIT (supra), in fact, the order of CIT (A) is dated 14.02.2017 and this judgment of Hon'ble Apex Court is dated 08.08.2017 and hence, this judgment was not available on 14.02.2017. Hence we feel it proper that the matter should go back to the file of CIT (A) for fresh decision after considering this judgment of Hon'ble Apex Court. We set aside the order of CIT 9A) and restore the matter back to his file for a fresh decision with the direction that he should examine and compare the facts of the present case and the facts of this case and thereafter, decide the issue afresh and pass necessary order as per law after providing adequate opportunity of being heard to both sides." 8. The Ho....