2016 (12) TMI 115

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....x Case Appeals are as follows:- (i) Whether in the facts and under the circumstances of the case, the Tribunal was right holding that the assessee society engaged in selling of agricultural produce of the members is eligible for the benefit of section 80P(2)(a)(i) in respect of the interest received from members? (ii) Whether in the facts and under the circumstances of the case, the Tribunal was right in holding that the assessee is eligible for deduction under seciton 80P(2)(a)(i) when it is not a cooperative society engaged in the business of banking or providing credit facilities to its members? 2. In this case, the Assessee is a Co-operative Marketing Society. Pursuant to a notice served on it by the Assessing Officer under Section....

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....attracted only to such Co-operative Societies which fall within the ambit of the expression 'Co-operative Bank'. Therefore, the whole question which is required to be examined in the present cases is whether the Assessee falls within the ambit and four corners of the expression 'Co-operative Bank' or it is merely a credit society which is carrying on its business by making available credit facilities to its members. 4. If we spare a look at the provisions of Tamil Nadu Co-operative Societies Act, 1983 henceforth called as Co-operative Societies Act, 1983 as well as its immediate predecessor namely Tamil Nadu Co-operative Societies Act, 1961, which have provided for the registration of Co-operative Societies. Under Section 4....

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.... withdrawable by cheque, draft, order or otherwise." Thus, banking means accepting of deposits of money from the public repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise and such acceptance of money is intended for the purpose of lending or investment by itself. Therefore, the crucial expression relevant for making one answer the description of banking is that it is capable of accepting money from the general public but not necessarily confined to its members. Any such activity carried on by anybody requires, apart from licensing, to answer the regulatory domain prescribed under the 1949 Act. Even a Co-operative Bank which carries on banking activity requires to be regulated by the provisions of the 194....