TaxTMI 
TaxTMI 
2021 (10) TMI 1263
X X X X Extracts X X X X
X X X X Extracts X X X X
....x Appellate Tribunal, "B" Bench, Bangalore ('Tribunal' for short) relating to the assessment year 2013-14 as well as the order dated 30.12.2019 passed by the Income Tax Officer, Udupi, Ward-3 in case bearing F.No. AAAJL0987F/ITO/W-3/UDP/2019-20. 2. The appeal was admitted by this Court on 06.03.2020 to consider the following substantial questions of law:- "1. Whether on the facts and circumstances of the case and in law, was it correct in holding the appellant is a 'primary co-operative bank' and that the appellant is not entitled for deduction u/s.80 P(2)(a)(i) of the Act? 2. Whether on the facts and circumstances of the case and in law, was it correct in holding that the ratio decidendi in 'The Citizen Co-operative So....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g Officer for fresh decision. 6. During the pendency of the present appeal proceedings, consequential order was passed by the Assessing Officer. Pursuant to which, the appellant has sought for amendment of the appeal memorandum challenging the consequential order dated 30.12.2019 passed by the Assessing Officer as well raising the additional substantial questions of law. In the consequential order, it has been held that the assessee is not entitled to deduction under Section 80P(2)(a)((i) of the Act and accordingly entire deduction claimed under Section 80P is disallowed. 7. Learned counsel for the assessee placing reliance on the judgment of the Hon'ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd., and others....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rs or nominal members. In terms of the judgment Hon'ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd., supra, loans given to nominal members would qualify for the purpose of deduction under Section 80P(2)(a)(i) of the Act. 8. Learned counsel for the Revenue would submit that the appeal has rendered infructuous in view of the consequential order passed by the Assessing Officer pursuant to the remand order made by the Tribunal. The appellant, if aggrieved, has to exhaust the alternative remedy of appeal available under the Act. The challenge made to the assessment order in the present appeal proceedings is not maintainable. Learned counsel further submitted that even on merits, the finding of the assessing officer d....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... may make a loan to a depositor on the security of his deposit." 12. The Tribunal placing reliance on the judgment of the Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd., vs. ACIT reported in (2017) 397 ITR 1, in order to determine the nature of business as to whether the same is of a co-operative bank or not, certificate from the Reserve Bank of India (RBI) about the nature of business of the assessee would be significant and accordingly restored the matter back to the file of Assessing Officer for fresh decision to enable the assessee to produce such certificate of RBI regarding the nature of business of the assessee within a reasonable time. It was further observed that the major portion of the bus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....under Section 80P(2)(a)(i) of the Act. In the wake of this judgment, the matter requires re-consideration by the Assessing Officer with reference to Section 2(f) and 60 of the Karnataka Co-operative Societies Act, 1959 read with Section 80P(2)(a)(i) of the Act. The order of the Tribunal impugned being adjudicated and this Court having formed an opinion that the matter requires re-consideration, the consequential order of assessment has to be set aside. Alternative remedy of statutory appeal is not a bar in the circumstances of the case. 15. For the aforesaid reasons, without answering substantial questions of law, we set aside the orders impugned and restore the matter to the file of the Assessing Officer to re-consider the matter in the....