TaxTMI 
TaxTMI 
2015 (12) TMI 1575
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....y cover the same contentions raised by both the respective parties. The above appeals challenge the orders passed by the authorities below whereby the ITAT has taken a view that the respondents are not a Co-operative Banks but a Co-operative Societies and as such entitled for exemption in terms of Section 80P(2)(a)(i) of the Income Tax Act ( herein after referred to as "the said Act" ). 3. Ms. A. Desai, learned counsel appearing for the appellant has pointed out that the respondents are to be treated as a Cooperative Banks as according to her the definition of 'income' in terms of Section 2(24)(viia) inter-alia includes an income from credit facilities provided to the members. The learned counsel further submits that as it is not....
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....ban Cooperative Credit Society Ltd., V/s The Assistant Commissioner of Income Tax, wherein one of us ( F. M. Reis, J) was a party. The learned counsel further pointed that in view of the observations of this Court while disposing of the said appeals which clearly disclose that giving credit facilities only to the members cannot be a Co-operative Bank, the question of entertaining the above appeals would not arise at all. The learned counsel has taken us through the observations in the said judgment of the Division Bench at para 9 to point out that such findings are squarely applicable to the facts of the present case. 5. Ms. A. Desai, learned counsel appearing for the appellant in reply to the said submissions has pointed out that while ....
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....to it in Chapter V of the Banking Regulation Act, 1949. A cooperative bank is defined in Section 5(cci) of Banking Regulation Act to mean a State Cooperative Bank, a Central Cooperative Bank and a primary cooperative bank. Admittedly, the appellant is not a State Cooperative Bank, a Central Cooperative Bank. Thus what has to be examined is whether the appellant is a primary Cooperative Bank as defined in Para V of the Banking Regulation Act. Section 5(ccv) of the Banking Regulation Act defines a primary cooperative bank to mean a cooperative society which cumulatively satisfies the following three conditions : (1) Its principal business or primary object should be banking business of Banking; (2) Its paid up share capital ....
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....appearing for the appellant that in view of the definition of the word 'income' as provided in Section 2(24)(viia), the respondents' Societies are to be treated as a Bank cannot be accepted. This aspect has also been taken note by the Division Bench while disposing of the said appeals in the case of M/s. The Quepem Urban Co-operative Credit Society Ltd., ( supra ). 8. Taking note of the observations in the said judgment in the case of M/s. The Quepem Urban Co-operative Credit Society Ltd., ( supra ) to the effect that merely giving credit facilities to the members would not be a Co-operative Bank but continued to be a Co-operative Society and as there is no material on record that the respondents were giving any such credit f....