2012 (4) TMI 612

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...., registered under the Co-operative Society Act, filed its return of income for Assessment Year 2007-08 on26.10.2007 declaring NIL income after claiming deduction u/ 80P(2)(a)(i) of the Income Tax Act, 1961 (herein after referred as the Act) to the extent of Rs. 51,90,360. The case was taken up for scrutiny by issue of notice u/ 143(2) on 22.9.2008 which was duly served on the assessee on 23.9.2008. The Assessing Officer completed the assessment by order u/s. 143(3) dt.23.10.2009. In doing so, the Assessing Officer denied the assessee's claim for deduction u/ 80P(2)(a)(i) of the Act to the extent of Rs. 51,90,360 holding that the assessee is carrying on banking activities which was hit by the amended provisions in section 80P(4) of the Act ....

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....nsport Credit Cooperative Society Ltd., as the said case has not reached finality. 3. The CIT(A) has not appreciated the facts that the main motto of the co-operative society is lending for its members, which is in the nature of banking transaction and comes under the purview of section 80P sub-section 4 of the IT Act, as inserted in Finance Act, 2006 to be effective from 1/4/2007. 4. The CIT(A) has not appreciated the fact that the provisions of section 80P(4) is equally applicable to the assessee who is in the nature of giving others. 5. For these and such other grounds that may be urged at the time of hearing, it si prayed that the order of CIT(A) is set aside and that the order of the Assessing Officer be restored." 3.1 At t....

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....edit for agricultural and rural development activities." 9.1 The above sub-section 4 of section 80P provides that deduction under the said section shall not be available to any cooperative bank other than a primary agricultural credit society or rural development bank. For the purpose of the said sub-section, cooperative bank shall have the meaning assigned to it in part V of the Banking Regulation Act, 1949. In Part V of the Banking Regulation Act, "cooperative bank" means a State Cooperative Bank, a Central Cooperative Bank and a Primate Cooperative Bank. 9.2 From the above section, it is clear that the provisions of section 80P(4) has got its application only to cooperative banks. Section 80P(4) does not define the word "cooperativ....

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....rms. 4. Society are bound by rules and regulations as specified by in the cooperative societies act. Filing of returns Cooperative banks have to submit annual return to RBI every year. Cooperative banks have to submit annual return to RBI every year. Inspection RBI has the power to inspect accounts and overall functioning of the bank. Registrar has the power to inspect accounts and overall functioning of the bank. Part V Part V of the Banking Regulation Act is applicable to cooperative banks. Part V of the Banking Regulation Act is not applicable to cooperative banks. Use of words The word 'bank', banker', 'banking' can be used by a cooperative bank. The word 'bank', banker', 'banking' cannot be used b....