Section 80P deduction turns on whether the assessee is a co-operative society or a co-operative bank.

Deduction under section 80P(2)(a)(i) is available to a co-operative society engaged in carrying on the business of banking or providing credit facilities to its members, while section 80P(4) withdraws that benefit only from a co-operative bank other than the specified exceptions. The document frames the further question whether income-tax authorities can determine, for section 80P purposes, if an assessee registered as a co-operative society is in substance a co-operative bank under Part V of the Banking Regulation Act, 1949. The operative distinction is between a co-operative society and a co-operative bank, as that classification governs eligibility for the deduction.

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Issues: (i) Whether deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 could be denied on the ground that the assessee, though registered as a co-operative society, was in substance a co-operative bank within the meaning of Part V of the Banking Regulation Act, 1949. (ii) Whether the income-tax authorities had jurisdiction to decide whether the assessee was a co-operative society or a co-operative bank for the purpose of section 80P of the Income-tax Act, 1961.

Issue (i): Whether deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 could be denied on the ground that the assessee, though registered as a co-operative society, was in substance a co-operative bank within the meaning of Part V of the Banking Regulation Act, 1949.

Analysis: The deduction under section 80P(2)(a)(i) is available to a co-operative society engaged in carrying on the business of banking or providing credit facilities to its members, while section 80P(4) withdraws that benefit only from a co-operative bank other than the specified exceptions. The expression

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