TaxTMI 
TaxTMI 
2024 (11) TMI 1605
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....ficate of registration issued by the Municipal Corporation of Government of India dated 19th December, 2016, the assessee/appellant is a Multi-State Co-operative Society registered under the Multi State Cooperative Societies Act, 2002. The assessee has filed its ITR on 24.10.2017 declaring total income of Rs. Nil, but the Ld. AO vide assessment order dated 16.12.2019 assessed the total income of Rs. 37,69,23,985/- for A.Y. 2017-18. Similarly, the assessee has filed its ITR on 28.09.2018 declaring total income of Rs. Nil, but the Ld. AO vide assessment order dated 18.04.2021 assessed the total income of Rs. 46,31,37,072/- for A.Y. 2018-19. Similarly, the assessee has filed its ITR on 22.12.2020 declaring total income of Rs. Nil, but the Ld. AO vide assessment order dated 20.09.2022 assessed the total income of Rs. 70,53,56,155/- for A.Y. 2020-21 and the assessee has claimed deduction u/s. 80P of the Act at the same amount. The Ld. AO vide assessment order dated 16.12.2019 has not allowed the exemption u/s. 80P of the Act, therefore, assessed income at Rs. 37,69,23,985/-. 4. As per Assessing Officer, the assessee is AOP running a Co-operative Credit society and doing banking busin....
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.... same as total income at the hand of the assessee. 6. Aggrieved by the assessment order, the assessee filed appeal before the Ld. CIT(A) The Ld. CIT(A) vide order dated 15.03.2024 accepted the contentions of the assessee and while putting reliance on judgment of the ITAT and the Hon'ble Bombay High Court for the A.Y. 2014-15, ITA No. 5217/Mum/2017, dated 27.03.2019, found the appellant eligible for deduction u/s. 80P and accordingly deleted the addition made by the Ld. AO. 7. The department is aggrieved by the order the Ld. CIT(A) and is an appeal before us and has raised following grounds of appeal: 1. "On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in allowing deduction u/s. 80P to the assessee even though the assessee carries on the banking business and other business in the name of co- operative credit society. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in law in allowing deduction u/s. 80P(2)(a)(i) without considering the inserted section 80P(4) and sub clause (viia) to section 2(24) vide Finance Act 2006 w.e.f. 01.4.2007. 3. On the facts and circumstances of the ca....
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.... Bombay High Court against the decision of the Hon'ble ITAT in the assessee's own case." 10. The Ld. CIT(A) has dealt with para no. 9 of the Ld. AO extracted above in the last para of the impugned order which is reproduced as under: "Further, the byelaws of the appellant society shows that appellant society operates branches in areas as defined to specific Railway Establishments (Sl.No.3 & 4); membership is restricted to employees of the railway establishments/offices (Sl. No. 10,11 &12); object and functions of the society is towards providing credit facility to its members ( Sl.No.6) and the raising of funds do not involve accepting deposits from general public (Sl.No.7). Considering the merit in the argument of the appellant that it is not a cooperative bank as per the Banking Regulation Act and by respectfully following the decision of the Hon'ble Bombay High Court in the case of Quepem Urban Co-operative Credit Society Ltd and ITAT in the appellants own case for the assessment year 2014-15, I am of the view that appellant is eligible for deduction under section 80P and accordingly addition made by the assessing officer is deleted." 11. Now the questions befo....
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....017, by which the High Court has dismissed the said appeal preferred by the Revenue, relying upon its earlier decision in the case of M/s. Quepem Urban Co-operative Credit Society Ltd. Vs. Assistant Commissioner of Income Tax, 377 ITR 272, the Revenue has preferred the present appeal. 2. The High Court considered the following question of law - "Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified as claimed by the assessee on the ground that the assessee, a co-operative credit society and is not a bank for the purpose of Section 80P(4) of the Act?" 3. Apart from the fact that against the relied upon decision in the case of M/s. Quepem Urban Co-operative Credit Society Ltd. (supra),the Special Leave Petition has been dismissed, learned counsel appearing on behalf of the respective parties, the issue involved in the present appeal is squarely covered against the Revenue in view of the decision of this Court in Mavilayi Service Cooperative Bank Limited and Others Vs. Commissioner of Income Tax, Calicut and Another (2021) 7 SCC 90. This Court, in the aforesaid decision has specifically observed and held that primary....
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...., in the case of an assessee being a cooperative society, the gross total income includes any income referred to in subsection (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely: (a) in the case of a cooperative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members, or" 16. The same ground was taken by the revenue in its appeal for the A.Y. 2014-15 decided in ITA No. 5217/Mum/2017, order dated 27.03.2019 by the Ld. Coordinate Bench, Mumbai, wherein the order of the Ld. Coordinate Bench has decided the grounds against the revenue. Until the said judgment of the Coordinate Bench is set aside by the higher courts, in view of our observation earlier in the judgment, the Ld. AO as well as the other revenue authorities higher to it are bound by the judgment of the Coordinate Bench. Therefore, for the sake of dealing with arguments of revenue, we have examined the ground regarding reliance by the revenue o....