Section 80P(4) shall not apply to an assessee which is not a “Co-operative bank”:

Assessee is a co-operative credit society engaged in carrying on the business of banking or providing credit facilities to its members and claims deduction u/s 80P(1) by virtue of provisions contained in section 80P(2)(a)(i). AO disallowed the said deduction on the count that as per section 80P(4), provisions of section 80P would not apply in relation to any co-operative bank other than primary agricultural credit society or primary co-operative agricultural and rural development bank. Both, CIT(A) as well as ITAT, reversed the decision of AO. On Revenue’s appeal, Hon’ble High Court observed that CBDT had, vide circular no.133 of 2007 dated 09.05.2007 clarified that section 80P(4) will not apply to an assessee which is not a “Co-operative bank”. In the given case, assessee is admittedly not a “Credit co-operative bank” but is a “Credit co-operative society”. Hence, it was held that exclusion clause of section 80P(4) shall not apply and accordingly, Revenue’s appeal was dismissed.

[CIT Vs. Jafari Momin Vikas Co-op. Credit Society Ltd. – Tax Appeal Nos.442, 443 and 863 of 2013]