TaxTMI 
TaxTMI 
2022 (9) TMI 346
X X X X Extracts X X X X
X X X X Extracts X X X X
..../s 143(3) r.w.s. 254 of the Income-tax Act, 1961 (hereinafter 'the Act'), for the assessment year 2009-10 vide order dated 27.12.2018 and for the assessment years 2012-13 & 2013-14 u/s 143(3) of the Act vide order dated 30.09.2014 & 24.08.2015. 2. The only issue in these three appeals of assessee is as regards to the order of CIT(A) confirming the denial of claim of deduction u/s 80P(2)(a)(i) of the Act. The assessee has raised identical grounds in all the appeals and hence, we take the facts and grounds from ITA No. 26/PAN/2019 for the assessment year 2009-10. The relevant grounds raised by assessee are reads as under: "1. On the facts and circumstances of the case and in law the ld. CIT(A) erred in disallowing the deduction u/s 80P(2)(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) took note of the decision of Hon'ble Supreme Court in the case of Citizen Co-operative Bank Ltd. vs ACIT, 397 ITR 1 (SC) for confirming the action of AO in denying the claim of deduction u/s.80P(2)(a)(i) of the Act to the assessee. Aggrieved, assessee preferred appeal before the Tribunal. 5. Now, before us the ld. counsel for the assessee argued that the issue has been concluded by the decision of Hon'ble Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd., vs. CIT, (2021) 431 ITR 1 (SC), wherein the Hon'ble Supreme Court has considered the decision of Co-ordinate Bench of Supreme Court in the case of Citizen Co-operative Bank Ltd., (supra) wherein it has laid down certain principles which are culled out from the jud....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the assessee in that 45 case was not so licenced, the assessee would not fall within the mischief of section 80P(4). 5.1. The Hon'ble Supreme Court also discussed the ratio decidendi of the case law of Citizen Co-operative Bank Ltd., and noted that deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication, as is sought to be done by the Revenue in the present case by adding the word "agriculture" into Section 80P(2)(a)(i) when it is not there. Further, section 80P(4) is to be read as a provision which excludes co-operative banks which are engaged in banking business i.e. engaged in lending money to members of the public, which have a banking licence in this behalf fr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....usiness only with members whether Regular or Associate or Nominal Members as noted by the AO. As referred by ld. counsel for the assessee, this issue has been dealt with by the Hon'ble Madras High court in the case of PCIT vs S1308 Ammapet Primary Agricultural Co-operative Bank Ltd. in T.C.A. No. 882 & 891 of 2018 dated 06.12.2018. The relevant extract of judgement of S1308 Ammapet Primary Agricultural Co-operative Bank Ltd. (supra) is as under: "12.Admittedly, the assessee - society is registered under the provisions of the TNCS Act. It defines the word 'members' under Section 2(16) to mean a person joining in the application for the registration of society and a person admitted to the membership after registration in accordance with the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d was the 'cooperative banks' and admittedly, the assessee society is a primary agricultural cooperative credit society and therefore, would be entitled to the benefit of Section 80P of the Act. 15. Further, for the assessment year 2014-15, the decision in the case of Citizen Cooperative Society Limited was relied upon by the Revenue before the Tribunal, which, in paragraph 6.1 of its order dated 28.2.2018 for the assessment year 2014-15, extracted the operative portion of that judgment. In that case, the Hon'ble Supreme Court found that the society carried on certain activities, which were contrary to the provisions of the Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995 and that they accepted deposits from third parties, wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the CIT (A) as confirmed by the Tribunal. In addition to that, the Assessing Officer has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub-Section (4) of Section 80P of the Act, the society has an area of operation, operates within the taluk and will provide long term credit for agricultural and rural development activities as well. The CIT (A) rightly granted the relief to the assessee as confirmed by the Tribunal. We do not find any good ground to entertain these appeals. 18. Accordingly, the above tax case appeals are dismissed. The substantial questions of law framed are answered against the Revenue." 6. Admittedly, the assessee is a primar....