2018 (6) TMI 1746

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....ng on banking business and further section 80P(4)(viia) and also the decision in the case of Totgar Co.op. Sales Society Ltd. (322 ITR 285). 2. During hearing, Shri Rajat Mittal, ld. DR, advanced argument which is identical to the ground raised by defending the addition made by the Ld. Assessing Officer. On the other hand, Shri Devdatta Mainkar, ld. counsel for the assessee, claimed that the impugned issue is covered in favour of the assessee in ITA No.4986/Mum/2016 in its own case for Assessment Year 2012-13. This factual matrix was not controverted by the Revenue. 2.1. We have considered the rival submissions and perused the material available on record. In view of the above, we are reproducing hereunder the relevant portion from the af....

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....s to its members. The assessee filed its return of income for Assessment Year 2012-13 on 27.09.2012 declaring Nil income. The assessment was completed on 30.03.2015 under section 143(3) of the Act. The Assessing Officer while passing the assessment order denied the deduction under section 80P(2)(a)(i) for Rs. 90,000/- and treated the same as Income from Other Sources. On appeal before the Ld. CIT(A), the assessee was allowed deduction under section 80P(2)(a)(i). Thus, aggrieved by the order of Ld.  CIT(A), the Revenue has filed the present appeal beforeus. The sole ground of appeal before us is whether the assessee is entitled for the deduction under section 80P(2)(a)(i) of the Act. 3. We have heard the Ld. Departmental Representativ....

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.... orders of authorities below. There is no dispute that assessee is a Co-operative Society of employees of KEM Hospital and Sheth GSM College. The assessee is registered under the Maharashtra State Co-operative Societies Act. The assessee is providing credit facilities to its members only. The Assessing Officer after comparing the provision of Banking Regulation Act as well as Maharashtra State Co-operative Societies Act, took the view that the assessee's society squarely fall within the definition of Co-operative Bank and therefore, hit by the provisions of section 80P(4) of the Act. Therefore, the assessing officer denied the deduction under section 80P(2)(a)(i) and treated the dividend received from Mumbai District Central Co-operative Ba....