TaxTMI 
TaxTMI 
2021 (5) TMI 533
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....of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Year 2013-14 vide order dated 28.01.2016. 2. The only issue in this appeal of the Revenue is against the order of CIT(A) deleting the addition made by the Assessing Officer by holding that the assessee, being a co-operative credit society, is not a co-operative bank and, therefore, entitled for deduction under Section 80P of the Act. For this, Revenue has raised the following two effective grounds of appeal :- "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 2,91,53,629/- by holding that the assessee being a Co-operative Credit Society is not a Co-operative Bank and hence is en....
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....he learned Assessing Officer has not disputed the fact of appellant carrying on business of providing credit facilities to its members and appellate authorities have allowed similar claim for deduction u/s 80-P(2)(a)(i) for earlier years in case of Appellant-Society, 4. On the facts and circumstances of the case and in law, the Ld. Assessing Officer has failed to appreciate that the appellant has declared its Income from its business activities of providing credit facilities under the head "Income form Business" since its inception and continued the uniform practice even after the amendment to the provisions of Section 2(24)(viia) of the Act and continued to claim admissible deduction under Section 80-P(2)(a)(i) of the Act." 4. We have h....
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.... no dispute about the fact that the assessee is carrying on the business of accepting deposits and advancing loans albeit from and to its members only." The CIT(A) then discussed the definition of 'banking business' and noted as under :- "Section 5(b) of the Banking Regulation Act, 1949, defines 'banking business' as under : "(a) 'banking means the accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise." From the above definition of banking, it is evident that the activity of accepting deposits from public at large for the purpose of lending would be banking business, but accepting deposits only from members and no....
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....banks. The High Court took note of the CBDT circular No. 133 of 2007 dated 09-05-2007 wherein it was clarified that sub-section (4) of section 80P will not apply to an assessee which is not a co-operative bank. Respectfully following the decision referred to above, I hold that the appellant's claim for deduction u/s. 80P cannot be disallowed since the exclusion contained in sub-section (4) of section 80P is not applicable to the appellant's case. It was stated that in the appellant's own case for A.Y. 2007-08 & 2008-09 Bombay High Court vide order dated 20-03-2017 has dismissed departmental appeal on the same issue. Further the A.Y 2009-10 in appellant's own case, ITAT 'A' Bench, Mumbai vide order dated 21-08-2015 has allowed in favour of....