2014 (6) TMI 913

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....HAR, JJ. For the Appellant : Sri G. Kamaladhar, Adv.) For the Respondent : Sri A. Shankar & Sri M. Lava, Advs. JUDGEMENT This appeal is preferred by the revenue challenging the order passed by the Tribunal, where in it is held that sub-section (4) of Section 80P of the Income Tax Act, 1961 is applicable only to co-operative banks and not to credit co-operative societies. 2. The subs....

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....Society with the primary object of transactions of Banking business?" 3. The Tribunal in its order has set out the difference between the co-operative bank and society as under: Nature Co-operative society registered under Banking Regulation Act, 1949 Co-operative Society registered under Karnataka Cooperative Society Act, 1959 Registration Under the Banking Regulation Act, 1949 ....

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...., pay orders, gift cheques, lockers, bank guarantees etc. 3. Society cannot act clearing agent, for cheques, DDs, pay orders and other forms. 4. Society are bound by rules and regulations as specified by in the cooperative societies act. Filing of returns Co-operative banks have to submit annual return to RBI every year. Society has to submit the annual return to Registrar of Societ....

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....LKOT, where, after referring to the relevant provisions of the Income Tax Act, and the banking Regulation Act, held as under: "If a Co-operative Bank is exclusively carrying banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said income is liable for tax. A Co-operative bank as defined under the Banking Re....