2025 (9) TMI 1761

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....r 2017-18, 2018-19 and 2020-21 respectively. As common issue in dispute is involved in all three appeals, therefore, same were heard together and disposed off by way of this consolidated order for the sake of convenience. 2. As identical grounds have been raised in all the appeals except the quantum of deduction involved, for sake of brevity, the grounds raised in the assessment year 2017-18 are reproduced as under: 1. On facts and in law, the Ld. CIT(A) erred in allowing the assessee's claim for deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961, despite the bar provided under Section 80P(4) applicable to co-operative banks. 2. The Ld. CIT(A) failed to appreciate that the assessee fulfils all the cond....

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....s returns of income for the Assessment Years (AYs) 2017-18, 2018-19 and 2020-21 on 23.10.2017, 26.09.2018 and 13.11.2020, declaring incomes of Rs. 6,63,32,186/-, Nil and Nil respectively. The returns were duly processed under section 143(1) of the Income-tax Act, 1961 ("the Act"). The cases were thereafter selected for scrutiny and statutory notices were issued and complied with. In the assessments framed for the respective years, the Assessing Officer disallowed the assessee's claim of deduction under section 80P(2)(a)(i) of the Act on the reasoning that the assessee was in substance functioning as a co- operative bank and, in view of section 80P(4), was not entitled to deduction. 3.2 On appeal, the learned Commissioner of Income Ta....

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.... section 80P(4). 4.2 Under the Explanation to section 80P(4) of the Act co-operative bank has been defined that as the meaning assigning to them under part 5 of Banking Regulation Act, 1949. Before us, the Ld. counsel for the assessee has referred to section 56 of the Banking Regulation wherein the banking is defined as accepting deposits from the public, withdrawal facilities through cheques and drafts. The Ld. counsel submitted that the respondent society meet this criteria as it deals exclusively with its members and not the public and cannot provide withdrawal facility through banking instruments. This fact has not been controverted by the Ld. Departmental Representative (DR). Thus, it is undisputed that the assessee does not accept ....