https://www.taxtmi.com/caselaws?id=244838 A co-operative society lending only to its members is not excluded from deduction under section 80P(2)(a)(i) unless it satisfies the statutory test of a primary co-operative bank under section 5(ccv) of the Banking Regulation Act, 1949. The decisive factors are whether banking business is its principal object and whether it is authorised to accept deposits from the public; member-based credit activity alone is insufficient. Although the society met the paid-up capital condition, it did not carry on banking as its principal object and therefore did not fall within section 80P(4). The Karnataka State Co-operative Societies Act, 1959 did not alter that banking-status analysis. en-us Fri, 28 Feb 2014 00:00:00 +0530 Mon, 10 Mar 2014 10:28:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244838 A co-operative society lending only to its members is not excluded from deduction under section 80P(2)(a)(i) unless it satisfies the statutory test of a primary co-operative bank under section 5(ccv) of the Banking Regulation Act, 1949. The decisive factors are whether banking business is its principal object and whether it is authorised to accept deposits from the public; member-based credit activity alone is insufficient. Although the society met the paid-up capital condition, it did not carry on banking as its principal object and therefore did not fall within section 80P(4). The Karnataka State Co-operative Societies Act, 1959 did not alter that banking-status analysis. Case-Laws Income Tax Fri, 28 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244838