Co-operative credit society exclusion under section 80P(4) applies only if statutory co-operative bank conditions are met.

A co-operative credit society is not automatically excluded by section 80P(4) unless it satisfies the statutory definition of a co-operative bank under the Banking Regulation Act, 1949. The Tribunal noted that a primary co-operative bank must meet the legal requirements relating to banking business, capital and membership restrictions, and found no material showing that the assessee did so. Because taxing provisions must be strictly construed, the exclusion could not be extended by implication. The society therefore remained entitled to deduction under section 80P(2)(a)(i).

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Issues: Whether a co-operative credit society is to be treated as a co-operative bank or primary co-operative bank for the purpose of section 80P(4), and whether it remains entitled to deduction under section 80P(2)(a)(i).

Analysis: The statutory scheme distinguishes a co-operative bank from a co-operative credit society. For section 80P(4), the meaning of co-operative bank is drawn from the Banking Regulation Act, 1949, and a primary co-operative bank must satisfy the statutory ingredients relating to banking business, capital and membership restrictions. The Tribunal found no material to show that the assessee satisfied those conditions. A co-operative credit society whose primary object is to provide financial accommodation to its members is separately defined and is not equated with a co-operative bank. Taxing provisions were required to be strictly construed, and the exclusion in section 80P(4) could not be extended by implication.

Conclusion: The assessee was not a primary co-operative bank and was entitled to deduction under section 80P(2)(a)(i); the revenue's appeal failed.

Ratio Decidendi: A co-operative credit society is not automatically covered by the exclusion in section 80P(4); unless it satisfies the statutory definition of a co-operative bank under the Banking Regulation Act, 1949, it remains eligible for deduction under section 80P(2)(a)(i).

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