ITO 28(3)(2), NAVI MUMBAI vs. SHRI KULSWAMI CO-OP. CREDIT SOCIETY LTD., NAVI MUMBAI

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ITA 5309/MUM/2016Status: DisposedITAT Mumbai21 February 2018AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, following the Bombay High Court's decision which affirmed that the assessee is a cooperative society, not a cooperative bank, and thus eligible for deduction under Section 80P.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of an addition, arguing the assessee, a cooperative credit society, was not entitled to Section 80P deduction as it was considered a cooperative bank. The assessee relied on a Bombay High Court decision in its own case.

What were the issues?

Whether a cooperative credit society is considered a cooperative bank for the purpose of disallowing deduction under Section 80P(4) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80P(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, G Bench, Mumbai

Before: Shri C.N. Prasad & Shri A.L. Saini

For Appellant: Shri V. Vidhyadhar
For Respondent: Shri Rajendra V. Kadrekar
Hearing: 19.02.2018Pronounced: 21.02.2018

This appeal has been filed by the Revenue against the order of the CIT(A)-26, Mumbai dated 22.06.2016 for A.Y. 2012-13.

2.

The only issue in the appeal of the Revenue is that the CIT(A) erred in deleting the addition of `3,26,27,381/- by holding that the assessee being a cooperative credit society is not as cooperative bank and is entitled for deduction under Section 80P of the Income Tax Act, 1961 (hereinafter “the Act”).

3.

The learned counsel for the assessee at the outset submits that the issue involved in the appeal is squarely covered by the decision of the Hon'ble Bombay High Court in assessee’s own case in IT Appeal Nos. 1682 & 1873 of 2014 dated 20.03.2017, copy of which is placed on record. Referring to the said decision the learned counsel submits that the appeal

M/s. Shri Kulswami Co-op Credit Society Ltd. filed by the Revenue against the order of the Tribunal for assessment years 2007-08 and 2008-09 has been dismissed by the Hon'ble High Court holding that no substantial question of law would arise in Tribunal holding that the assessee is a cooperative society and is not a bank for the purpose of section 80P(4) of the Act.

4.

The learned D.R., on the other hand, vehemently supported the order of the Assessing Officer.

5.

We have heard the rival submissions and perused the orders of the authorities below and the decision relied upon by the learned counsel for the assessee. In this case the AO while completing the assessment for A.Y. 2012-13 held that the assessee is a cooperative bank other than a primary agricultural credit society or primary cooperative agricultural and rural development bank. It was also held that the assessee fulfils conditions laid down under Section 56(c)(ccv) of part V of the Banking Regulation Act, 1949 for being a co-operative bank. Thus, the AO held that under sub- section (4) of section 80P of the Act the deduction under Section 80P(2)(a)(i) would not be allowable to the assessee.

6.

On appeal the learned CIT(A), following the decision of the Coordinate Bench in assessee’s own case for assessment years 2007-08 and 2008-09 allowed the claim for deduction under Section 80P of the assessee. The Tribunal for assessment years 2007-08 and 2008-09 held that the assessee is a cooperative society and not a cooperative bank and is entitled for deduction under Section 80P of the Act. We also find that this view of the Tribunal has been affirmed by the Hon'ble Bombay High Court by rejecting Revenue’s appeal in IT Appeal Nos. 1682 & 1873 of 2014 dated 20.03.2017 by holding that no substantial question of law would arise. Thus, respectfully following the said decision of the Hon'ble High Court and the Coordinate Bench we uphold the order of the CIT(A) in holding that the assessee is a cooperative society and not a cooperative bank and is entitled for deduction under Section 80P of the Act.

M/s. Shri Kulswami Co-op Credit Society Ltd. 7. In the result, the appeal filed by the Revenue is dismissed.

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