Income-tax, Ward-3(4), Latur V. Dharasur Mardini Nagar Sahakari Patsanstha Ltd., Osmanabad

ITA 1455/PUN/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9769 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 21-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Section: 56

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER , AND SHRI R.K.PANDA, ACCOUNTANT MEMBER. ITA.NO.1455/PN/2011 (ASSTT. YEAR : 2007-08) ITO, WARD-3(4), LATUR. .. APPELLANT VS. DHARASUR MARDINI NAGAR SAHAKARI PATSANSTHA LTD., SAMARTH NAGAR, OSAMANABAD. .. RESPONDENT PAN: AAAAD1040L ASSESSEE BY : SHRI SUNIL GANOO DEPARTMENT BY : SHRI S.K.SINGH DATE OF HEARING : 12.11.2012 DATE OF PRONOUNCEMENT : 20.11.2012 ORDER PER R.K.PANDA, AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER DATED 28.09.2011 BY THE CIT(A), AURANGABAD, RELATIN G TO A.Y. 2007-08. 2. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY CONSTITUTED UNDER THE MAHARASHTRA STATE CO- OP SOCIETIES ACT, 1960, AND IS ENGAGED IN THE BUSINESS OF PROVID ING CREDIT FACILITIES TO ITS MEMBERS. IT FILED ITS RETURN OF INCOME ON 31.10.2007 DECLARING NIL INCOME AFTER CLAIMING DEDUCTION OF RS .19,21,181/- U/S.80(P)(2)(A)(I) OF THE INCOME TAX ACT, 1961. ON BEING QUESTIONED BY THE ASSESSING OFFICER DURING THE ASSESSMENT PROC EEDINGS REGARDING THE ALLOWABILITY OF CLAIM OF DEDUCTION U/ S.80(P) IT WAS CLAIMED THAT THE PRIMARY OBJECT OF THE SOCIETY IS T O PROVIDE FINANCIAL ACCOMMODATION TO MEMBERS ONLY. IT WAS ARGUED THAT THE PROVISIONS OF BANKING REGULATION ACT 1949 ARE NOT APPLICABLE T O THE ASSESSEE, THERE IS NO CONTROL OR SUPERVISION OF THE RBI AND T HERE IS NO CHEQUE CLEARING FACILITY AVAILABLE TO THE ASSESSEE. THERE FORE, IT IS NOT A 2 CO-OP BANK BUT A CO-OP SOCIETY ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBERS AND, THEREFORE, IS ENTITL ED TO CLAIM DEDUCTION U/S.80(P)(2)(A)(I). 3. HOWEVER, THE ASSESSING OFFICER WAS NOT CONVINCED WITH THE EXPLANATION GIVEN BY THE ASSESSEE AND HELD THAT THE ASSESSEE CREDIT CO-OP SOCIETY IS NOT ENTITLED TO DEDUCTION U/S.80P( 2)(A)(I) FOR THE FOLLOWING REASONS (WHICH HAS BEEN SUMMARISED BY THE CIT(A) AT PAGES 2 AND 3 OF HIS ORDER): (I) THE APPELLANT CREDIT CO-OPERATIVE IS A PRIMARY CO-O PERATIVE BANK AS PER EXPLANATION BELOW SUB-SECTION 4 OF SECT ION 80P AND HENCE NOT ELIGIBLE TO CLAIM DEDUCTION U/S.80P(2)(A)(I) OF THE I.T.ACT. (II) THE CLAUSE (VIIA) INSERTED IN SECTION 2(24) BY THE FINANCE ACT, 2006 TO PROVIDE THAT THE PROFITS AND GAINS OF BUSINESS OF BANKING INCLUDES INCOME OF CREDIT CO-OPERATIVE S OCIETIES FROM PROVIDING CREDIT FACILITIES TO ITS MEMBERS. (III) THE AMENDMENT TO SECTION 80P(4) BY FINANCE ACT, 200 6 PROVIDES THAT THE PROVISIONS OF SECTION 80P SHALL N OT APPLY IN RELATING TO CO-OPERATIVE BANK OTHER THAN PRIMARY AGRICULTURAL CREDIT SOCIETY AND PRIMARY CO-OPERATIV E AGRICULTURAL AND RURAL DEVELOPMENT BANK. (IV) THE EXPLANATION TO SECTION 80P(4) LAID DOWN THAT A CO- OPERATIVE BANK SHALL HAVE THE MEANING ASSIGNED TO IT IN PART-V OF THE BANKING REGULATION ACT, 1949. (V) AS PER CLARIFICATION ISSUED BY CBDT IN F.NO.133/06/ 2007- TPL VIDE LETTER DATED 09.05.2008, CO-OPERATIVE BANK SHALL HAVE THE MEANING ASSIGNED TO IT IN PART-V OF THE BA NKING REGULATION ACT, 1949. AS PER PART-V OF THE BANKING REGULATION ACT, CO-OPERATIVE BANKS MEANS A STATE CO- OPERATIVE BANK, A CENTRAL CO-OPERATIVE BANK AND PRI MARY CO-OPERATIVE BANK. (VI) CLAUSE (CCI) OF SECTION-5 DEFINES A CO-OPERATIVE BA NK TO INCLUDE A PRIMARY CO-OPERATIVE BANK AND CLAUSE (CCI ) DEFINES A CO-OPERATIVE CREDIT SOCIETY TO MEAN CO-OP ERATIVE SOCIETY THE PRIMARY OBJECT OF WHICH IS TO PROVIDE F INANCIAL ACCOMMODATION TO ITS MEMBERS. CLAUSE (CCV) DEFINES A PRIMARY CO-OPERATIVE BANK IS A CO-OPERATIVE SOCIETY WHOSE PRIMARY OBJECTIVE OR PRINCIPAL BUSINESS IS TRANSACT ING IN BANKING BUSINESS WHOSE PAID UP CAPITAL AND RESERVE IS MORE THAN RS.1,00,000/- ETC. (VII) THE REPORT OF MADHAVARAO COMMITTEE 1999 FORMED BY R BI SUPPORTS THE VIEW THAT PRIMARY CREDIT CO-OPERATIVE SOCIETIES AUTOMATICALLY BECOMES A PRIMARY CO-OPERATIVE BANK A ND HENCE IT HAS TO APPLY TO RBI FOR A LICENCE TO CARRY ON BANKING BUSINESS BUT IT CAN CARRY ON BANKING BUSINE SS UNTIL IT IS GRANTED A LICENCE OR NOTIFIED THAT A LI CENCE CANNOT BE GRANTED TO IT. 3 (VIII) THE APPELLANT IS CARRYING ON THE BANKING ACTIVITY A S DEFINED IN SECTION-5 OF THE BANKING REGULATION ACT AS PER WHICH BANKING MEANS THE ACCEPTING FOR THE PURPOSE OF LENDING OR INVESTMENT OF DEPOSITS OF MONEY FROM THE PUBLIC REPAYABLE ON DEMAND OR OTHERWISE AND WITHDRAWAL BY CHEQUE, DRAFT ORDER OR OTHERWISE. HOWEVER, THE TE RM TRANSACTION IN BANKING BUSINESS WILL INCLUDE NOT ON LY THE BUSINESS ENUMERATED IN SECTION 5B OF BANKING REGULA TION ACT, 1949 BUT ALSO THOSE ACTIVITIES. THIS VIEW IS SUPPORTED BY THE DECISIONS IN THE CASE OF CIT VS. AHMEDNAGAR DISTRICT CENTRAL CO-OPERATIVE BANK LTD. (2003) 264 ITR 38, C IT VS. BARODA PEOPLES CO-OPERATIVE BANK LTD. 280 ITR 282 (GUJ.). 4. IN APPEAL THE LD. CIT(A) ALLOWED THE CLAIM OF DE DUCTION U/S.80P(2)(A)(I) MADE BY THE ASSESSEE. WHILE DOING SO, HE CONSIDERED THE AMENDMENT TO SECTION 80P(4) BY THE F INANCE ACT, 2006 W.E.F. 01.04.2007, THE BANKING REGULATION ACT, 1949, THE CBDT CIRCULAR BEARING NO.2 OF 2008 DATED 12.03.2008 AND THE CBDT CLARIFICATION BEARING F.NO.133/06/07-TPL VIDE LETTER DATED 09.05.2008. 4.1. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE R EVENUE IS IN APPEAL BEFORE US WITH THE FOLLOWING GROUNDS: (I) THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITI ON MADE BY THE AO AT RS.19,21,180/- ON ACCOUNT OF DISALLOWA NCE OF DEDUCTION U/S.80P(2)(A)(I) OF THE I.T. ACT, 1961. (II) THE LEARNED CIT(A) HAS ERRED IN NOT CONSIDERING THE FACT THAT AS PER INSERTION OF CLAUSE (VIIA) TO SEC.2(24) W.E.F. 01.04.2007, THE PROFITS AND GAINS OF ANY BANKING BU SINESS (INCLUDING PROVIDING OF CREDIT FACILITIES) CARRIED ON BY A COOPERATIVE SOCIETY WITH ITS MEMBERS IS INCLUDED IN THE DEFINITION OF INCOME. (III) THE LEARNED CIT(A) HAS NOT APPRECIATED THE FACT THA T AS PER THE PROVISIONS OF SUB-SECTION 4 OF SECTION 80P DEDU CTION SHALL NOT BE AVAILABLE TO ANY COOPERATIVE BANK OTHE R THAN A COOPERATIVE AGRICULTURAL CREDIT SOCIETY OR A PRIMAR Y COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK . IN THE INSTANT CASE THE ASSESSEE IS NOT A COOPERATIVE AGRICULTURAL CREDIT SOCIETY OR A PRIMARY COOPERATIV E AGRICULTURAL CREDIT SOCIETY OR A PRIMARY COOPERATIV E AGRICULTURAL AND RURAL DEVELOPMENT BANK AND AS SUCH NOT ELIGIBLE FOR DEDUCTION U/S.80P(2)(A)(I). (IV) THE LEARNED CIT(A) HAS ERRED IN NOT CONSIDERING THE FACT THAT CLAUSE (CCI) OF SEC.5 OF THE BANKING REGULATIO N ACT DEFINES A COOPERATIVE BANK TO INCLUDE A PRIMARY 4 COOPERATIVE BANK AND CLAUSE (CCII) DEFINES A COOPER ATIVE CREDIT SOCIETY TO MEAN A COOPERATIVE SOCIETY THE PR IMARY OBJECT OF WHICH IS TO PROVIDE FINANCIAL ACCOMMODATI ON TO ITS MEMBERS, CLAUSE (CCV) DEFINES A PRIMARY COOPERATIVE BANK AS A COOPERATIVE SOCIETY WHOSE PRIMARY OBJECT OR PR INCIPAL BUSINESS IS TRANSACTING IN A BANKING BUSINESS WHOSE PAID UP CAPITAL AND RESERVE IS MORE THAN RS.1,00,000/-. IN THE PRESENT CASE THE SAME EXCEEDS THIS LIMIT AND AS SUC H THE ASSESSEE IS NOT ENTITLED TO DEDUCTION U/S.80P(2)(A) (I). 5. THE LD. DR HEAVILY RELIED ON THE ORDER OF THE AS SESSING OFFICER. THE LD. COUNSEL FOR THE ASSESSEE ON THE OTHER HAND FILED A COPY OF THE ORDER OF THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. JAIN NAGARI SAHAKARI PAT SANSTHA LTD. VIDE ITA.NO.1 029/PN/2011, ORDER DATED 14.09.2012 FOR A.Y. 2008-09 AND SUBMITT ED THAT UNDER IDENTICAL FACTS AND CIRCUMSTANCES, THE TRIBUNAL DIS MISSED THE APPEAL FILED BY THE REVENUE WHEREIN THE CIT(A) HAD HELD THAT THE RESPONDENT CO-OP SOCIETY IS NOT A CO-OP BANK AND IS ENTITLED TO DEDUCTION U/S.80P(2)(A)(I). HE ACCORDINGLY SUBMITT ED THAT THIS BEING A COVERED MATTER, THE APPEAL FILED BY THE REVENUE S HOULD BE DISMISSED. 6. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES, PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE FIND THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. JAIN NAGARI SAHAKARI PAT SANSTHA LTD. (SUPRA), WHILE ALLOWING T HE CLAIM OF DEDUCTION U/S.80(P)(2)(A)(I), HAS HELD AS UNDER: 5. AFTER HEARING BOTH THE SIDES, WE FIND THE COORDI NATE BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. JANKALYAN NA GRI SAHAKARI PAT SANSTHA LTD. (SUPRA) WHILE UPHOLDING THE ORDER OF THE CIT(A) AND DISMISSING THE APPEAL FILED BY THE REVENUE HAS HELD AS UNDER : 4. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PART IES AND PERUSED THE RECORDS. IN THIS CASE, AS PER THE FACTS ON RECORD, THE ASSESSEE IS A COOPERATIVE CREDIT SOCIET Y. SECTION 80P HAS UNDERGONE AN AMENDMENT W.E.F.1.4.20 07 BY INSERTION OF SUB-SEC. (4) WHICH READS AS UNDER : (4) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IN RELATION TO ANY COOPERATIVE BANK OTHER THAN A PRIMA RY 5 AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO-OPERATI VE AGRICULTURAL AND RURAL DEVELOPMENT BANK. EXPLANATION FOR THE PURPOSE OF THIS SUB-SECTION,- (A) CO-OPERATIVE BANK AND PRIMARY AGRICULTURAL C REDIT SOCIETY SHALL HAVE THE MEANINGS RESPECTIVELY ASSIG NED TO THEM IN PART V OF THE BANKING REGULATION ACT, 1949 (10 OF 1949); (B) PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK MEANS A SOCIETY HAVING ITS AREA O F OPERATION CONFINED TO A TALUK AND THE PRINCIPAL OBJ ECT OF WHICH IS TO PROVIDE FOR LONG-TERM CREDIT FOR AGRICU LTURAL AND RURAL DEVELOPMENT ACTIVITIES. 5. IT IS TO BE MENTION HERE THAT UP TO A.Y. 2006-07 , ANY CO- OPERATIVE SOCIETY WHICH WAS ENGAGED IN THE BUSINESS OF CARRYING ON BANKING WAS ELIGIBLE FOR DEDUCTION IN R ESPECT OF THE WHOLE OF THE AMOUNT OF PROFIT ATTRIBUTABLE T O ITS BANKING ACTIVITIES. FOR THE BENEFIT OF DECIDING THE PRESENT ISSUE, IT IS NECESSARY TO CONSIDER THE LEGAL POSITI ON AS APPLICABLE UP-TO THE A.Y. 2006-07, MORE PARTICULARL Y IN VIEW OF SUB-SECTION (2) OF SEC. 80-P.SECTION 80 P ( 2) READS AS UNDER :- 80P. (1) WHERE, IN THE CASE OF AN ASSESSEE BEING A CO-OPERATIVE SOCIETY, THE GROSS TOTAL INCOME INCLUD ES ANY INCOME REFERRED TO IN SUBSECTION (2), THERE SHA LL BE DEDUCTED, IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF THIS SECTION, THE SUMS SPECIFIED IN S UB- SECTION(2), IN COMPUTING THE TOTAL INCOME OF THE ASSESSEE. (2) THE SUMS REFERRED TO IN SUB-SECTION (1) SHALL B E THE FOLLOWING, NAMELY:- (A) IN THE CASE OF A CO-OPERATIVE SOCIETY ENGAGED IN (I) CARRYING ON THE BUSINESS OF BANKING OR PROVIDING CREDIT FACILITIES TO ITS MEMBERS, OR (II) A COTTAGE INDUSTRY, OR (III) THE MARKETING OF AGRICULTURAL PRODUCE GROWN BY ITS MEMBERS, OR (IV) THE PURCHASE OF AGRICULTURAL IMPLEMENTS, SEEDS, LIVESTOCK OR OTHER ARTICLES INTENDED FOR AGRICULTURE FOR THE PURPOSE OF SUPPLYING THEM TO ITS MEMBERS, OR (V) .. (VI) .. 6 6. SUB-SECTION (4) WAS INTRODUCED FOR WITHDRAWING T HE DEDUCTION TO THE CO-OPERATIVE BANK OTHER THAN PRIMA RY AGRICULTURE CREDIT SOCIETY OR PRIMARY CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK. IN VIEW OF EXPLANATION BELOW SUB-SEC.(4) OF SEC. 80P, THE DEFI NITION OF THE CO-OPERATIVE BANK AS ASSIGNED IN PARA 5 OF THE BANKING REGULATION ACT IS TO BE CONSIDERED. IN THE OPINION OF THE A.O, AS THE NATURE OF THE ACTIVITIES OF THE ASSESSEE CREDIT SOCIETY ARE ANALOGOUS TO THE BANKING ACTIVIT IES, WHICH ARE MORE SPECIFICALLY DESCRIBE IN THE BANKING REGULATION ACT AND HENCE, ASSESSEE PARTAKES THE CHARACTER OF PRIMARY CO-OPERATIVE BANK AS DEFINED IN CLAUSE (CCII ) OF THE BANKING REGULATION ACT 1949. CLAUSE (CCI ) OF SEC 5 OF BR ACT DEFINES THE CO-OPERATIVE BANK MEANS STATE CO-OPERATIVE BANK, CENTRAL CO-OPERATIVE BANK AND PRIMARY CO-OPERATIVE BANK. 7. THE PRIMARY CO-OPERATIVE BANK IS TREATED AS CO- OPERATIVE BANK IN VIEW OF CL. (CCI) OF SEC 5 OF THE B. R. ACT, 1949. DEFINITION OF PRIMARY CO-OPERATIVE BANK IS G IVEN IN CL. (CCI) OF SEC. 5 OF B. R. ACT, 1949, WHICH READS AS UNDER; PRIMARY CO-OPERATIVE BANK MEANS A CO-OPERATIVE SO CIETY OTHER THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY (I) THE PRIMARY OBJECT OR PRINCIPAL BUSINESS OF WHI CH IS THE TRANSACTIONS OF BANKING BUSINESS; (II) THE PAID-UP SHARE CAPITAL AND RESERVES OF WHIC H ARE NOT LESS THAN ONE LACK OF RUPEES; AND (III) THE BY-LAWS OF WHICH DO NOT PERMIT ADMISSION OF ANY OTHER COOPERATIVE SOCIETY AS A MEMBER: PROVIDED THAT THIS SUB-CLAUSE SHALL NOT APPLY TO TH E ADMISSION OF CO-OPERATIVE BANK AS A MEMBER BY REASO N OF SUCH CO-OPERATIVE BANK SUBSCRIBING TO SHARE CAPITAL OF SUCH CO-OPERATIVE SOCIETY OUT OF FUNDS PROVIDED BY STATE GOVERNMENT FOR THE PURPOSE. ON CAREFUL PERUSAL OF ABOVE DEFINITION IT IS SEEN T HAT BASIC MANDATE ANY COOPERATIVE SOCIETY TO COVER IN DEFINIT ION OF PRIMARY CO-OPERATIVE BANK IS THAT ITS PRIMARY OBJ ECT OR PRINCIPAL BUSINESS SHOULD BE TRANSACTIONS OF BANKIN G BUSINESS. THE TERM BANKING IS DEFINED IN B. R. AC T AND AS PER SAID DEFINITION THERE IS NO RESTRICTION THAT DE POSITOR SHOULD BE MEMBER OF SAID SOCIETY BUT IT IS PUBLIC A T LARGE WITH WHOM BUSINESS TRANSACTIONS CAN BE CARRIED OUT. OTHER TWO CONDITIONS AS MENTIONED IN CLS.(II) &(III ) ARE ON FULFILLING FIRST CONDITION GIVEN IN CL.(I). IN PRES ENT CASE NOTHING IS ON RECORD TO SUGGEST THAT ALL THREE COND ITIONS ARE 7 FULFILLED TO HOLD THAT ASSESSEE WHICH IS A CO-OPERA TIVE SOCIETY IS A PRIMARY CO-OPERATIVE BANK 8. IT IS PERTINENT TO NOTE HERE THAT THE DEFINITION OF THE CO- OPERATIVE CREDIT SOCIETY IS GIVEN IN CLAUSE (CCII) OF SEC. 5 WHICH READS AS UNDER : CO-OPERATIVE CREDIT SOCIETY MEANS A CO-OPERATIVE SOCIETY, THE PRIMARY OBJECT OF WHICH IS TO PROVIDE FINANCIAL ACCOMMODATION TO ITS MEMBERS AND INCLUDES A CO-OPERATIVE LAND MORTGAGE BANK; 9. THE BANKING REGULATION ACT, 1949 DEFINES OF CO- OPERATIVE BANK IN CL.(CCI) OF SEC. 5 (AS INSERTED B Y SEC. 56 OF THE SAID ACT) AND CO-OPERATIVE CREDIT SOCIETY IS NO T INCLUDED BUT ITS IDENTITY IS KEPT SEPARATE BY WAY O F INDEPENDENT DEFINITION IN VIEW OF CLAUSE (CCII) OF SEC. 5 OF THE BANKING REGULATION ACT WHICH DEFINES WHAT IS MEANING OF CREDIT CO-OPERATIVE SOCIETY. ON PLAIN READING OF THE BANKING REGULATION ACT, 1949, NOWHERE IT IS SUGGESTED THAT THE TERM CO-OPERATIVE BANK ALSO IN CLUDES CO-OPERATIVE CREDIT SOCIETY ALSO. MEANING OF ANY TERM OR EXPRESSION IS TO BE ASCERTAINED IN THE CONTEXT OF P ROVISIONS OF REFERRED ACT. AS PER SUB-SEC. (4) OF SEC. 80P OF THE I. T. ACT, CO-OPERATIVE BANK MEANS STATE CO-OPERATIVE BAN K, A CENTRAL CO-OPERATIVE BANK AND A PRIMARY CO-OPERATIV E BANK. IT IS SEEN THAT COOPERATIVE BANK IS DEPRIVED OF THE BENEFIT OF THE DEDUCTION U/S. 80P(2)(A)(I) OF THE A CT. AS PER THE INTERPRETATION GIVEN BY THE AO, ASSESSEE CO-OPE RATIVE CREDIT SOCIETY PARTAKES THE CHARACTER OF THE PRIMAR Y CO- OPERATIVE BANK AND AS THE PRIMARY CO-OPERATIVE BANK IS INCLUDED IN THE DEFINITION OF THE COOPERATIVE BANK AND HENCE, IS NOT ENTITLED TO THE BENEFITS OF SEC. 80P( 2)(A)(I)OF I. T. ACT. IN OUR OPINION, THIS IS NOT THE CORRECT INT ERPRETATION. IT IS WELL SETTLED PRINCIPLE IN THE INTERPRETATION OF THE TAXING PROVISIONS THAT THE SAME ARE TO BE STRICTLY CONSTR UED AND THERE IS N ROOM FOR ANY INTENDMENT. THERE IS NO PRESUMPTION AS TO TAX. NOTHING IS TO BE READ OR NOT HING IS TO BE IMPLIED. ONE HAS TO FAIRLY LOOK INTO LANGUAGE USED BY THE PARLIAMENT. THE PARLIAMENT HAS ADOPTED THE DEFI NITION OF THE CO-OPERATIVE BANK BY REFERRING THE SAME AS G IVEN IN THE BANKING REGULATION ACT, 1949. IT IS CALLED LEGI SLATION BY REFERENCE AND WE HAVE TO GIVE THE STRICT INTERPR ETATION WHILE INTERPRETING THE EFFECT OF SUB-SEC. (4) TO SE C. 80 P. IN OUR OPINION, CO-OPERATIVE CREDIT SOCIETY IS DISTINC T AND SEPARATE FROM THE CO-OPERATIVE BANK NOR IT CAN BE S AID AS A PRIMARY CO-OPERATIVE BANK WITHIN THE MEANING OF BANKING REGULATION ACT, 1949. HENCE, THE ASSESSEE B EING A CO-OPERATIVE CREDIT SOCIETY IS ENTITLED FOR DEDUC TION U/S. 80 P(2)(A)(I) OF THE ACT. WE ACCORDINGLY UPHOLD THE ORDER OF THE LD CIT(A). 10. IN RESULT, REVENUES APPEAL IS DISMISSED. 8 6. RESPECTFULLY FOLLOWING THE DECISION OF THE COORD INATE BENCH OF THE TRIBUNAL CITED (SUPRA) AND IN ABSENCE OF ANY CONTRARY MATERIAL BROUGHT TO OUR NOTICE AGAINST THE ORDER OF THE TRIBUNAL WE HOLD THAT THE COOPERATIVE SOCIETY IS DISTINCT AN D SEPARATE FROM THE COOPERATIVE BANK AND CANNOT BE SAID AS A P RIMARY COOPERATIVE BANK WITHIN THE MEANING OF BANKING REGU LATION ACT, 1949. THEREFORE, THE ASSESSEE COOPERATIVE CREDIT S OCIETY IS ENTITLED TO DEDUCTION U/S.80P(2)(A)(I) OF THE INCOM E TAX ACT. WE ACCORDINGLY UPHOLD THE ORDER OF THE CIT(A) AND THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED . 7. SINCE THE FACTS IN THE INSTANT CASE ARE IDENTICA L TO THE FACTS IN THE CASE OF JAIN NAGARI SAHAKARI PAT SANSTHA LTD. ( SUPRA), THEREFORE, FOLLOWING THE DECISION OF THE TRIBUNAL I N THE CASE CITED ABOVE AND IN ABSENCE OF ANY CONTRARY MATERIAL BROUG HT TO OUR NOTICE BY THE LD. DR, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A) IN ALLOWING THE CLAIM OF DEDUCTION U/S.80P(2)(A)(I) OF THE ACT. WE ACCORDINGLY UPHOLD THE ORDER OF THE CIT(A) AND THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 20 TH DAY OF NOVEMBER, 2012. SD/- SD/- ( SHAILENDRA KUMAR YADAV ) ( R.K.PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER GSPS PUNE, DATED THE 20 TH NOVEMBER, 2012 COPY OF THE ORDER IS FORWARDED TO: 1. THE ASSESSEE 2. THE ITO, WARD-3(4), LATUR. 3. THE CIT(A), AURANGABAD. 4. THE CIT, AURANGABAD. 5. THE DR B BENCH, PUNE. 6. GUARD FILE. BY ORDER //TRUE COPY// SR.PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, PUNE.