Regional rural bank treated as a co-operative society, preserving deduction under section 80P(2)(a)(i).

A regional rural bank governed by the Regional Rural Banks Act, 1976 was treated as a co-operative society for the purpose of section 80P(2)(a)(i) of the Income-tax Act, so the exclusion in section 80P(4) for co-operative banks did not bar the deduction. The analysis followed the Tribunal's earlier decision in the assessee's own case and the coordinate bench finding on the same point. On that basis, the deduction claim for the relevant assessment years was accepted.

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Issues: Whether the assessee was entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 for the relevant assessment years.

Analysis: The matter was covered by the Tribunal's earlier decision in the assessee's own case, where it was held that a regional rural bank governed by the Regional Rural Banks Act, 1976 was to be treated as a co-operative society for the purpose of section 80P(2)(a)(i). On that basis, the exclusion in section 80P(4) applicable to co-operative banks did not deny the deduction. Following the coordinate bench decision and the specific finding recorded therein, the claim for deduction was accepted for the years in question.

Conclusion: The assessee was entitled to deduction under section 80P(2)(a)(i), and the Revenue's challenge failed.

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