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Income Tax Appellate Tribunal, ‘C’ BENCH : CHENNAI
Before: SHRI ABRAHAM P. GEORGE & SHRI G. PAVAN KUMAR
आदेश / O R D E R
PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER:
In this appeal filed by the Revenue, it is aggrieved that ld.
Commissioner of Income Tax (Appeals) allowed claim of the assessee
ITA No.2882/Mds/2016. :- 2 -: u/s.80 P(2)(a)(i) of the Income Tax Act, 1961 (herein after referred to as ‘the Act’).
Assessee was denied deduction of �5,08,85,733/- claimed by 2. it u/s. 80 P (2)(a)(i) of the Act by the ld. Assessing Officer relying on Sec. 80P(4) of the Act. As per ld. Assessing Officer, assessee though it claimed itself a Primary Agricultural Credit Society, it was doing banking business as defined in Section 5(b) of Banking Regulation Act, 1949. In the opinion of ld. Assessing Officer, there was a specific prohibition in Sec. 80P(4) of the Act, whereby Co-operative banks could not avail the deduction u/s.80P(2) of the Act. He denied the claim.
When the matter reached the ld. Commissioner of Income Tax (Appeals), he held that assessee could not be considered as a cooperative Bank within the meaning of Sec. 80P(4) of the Act.
According to him, assessee was only a Primary Agricultural Credit Society which was eligible for deduction u/s.80 P(2)(a)(i) of the Act, for interest received from its members. In taking this view, the ld. Commissioner of Income Tax (Appeals) had followed this Tribunal order in assessee’s own case for assessment year 2008-2009 in dated 21.03.2014.
ITA No.2882/Mds/2016. :- 3 -:
Now before us, ld. Departmental Representative was unable to bring up any case where a view in favour of the Revenue was taken. Application of Sec. 80P(4) of the Act is only on cooperative banks and not on Primary Agricultural Credit Society. Ld. Commissioner of Income Tax (Appeals) having followed the Tribunal order in assessee’s own case for earlier year, we do not find any reason to interfere with his order.
In the result, the appeal of the Revenue stands dismissed. 5.
Order pronounced on Friday, the 6th day of January, 2017, at Chennai.