2016 (6) TMI 1226

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....his appeal by raising the following questions of law : "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessee-society is entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 even when the assessee is a co-operative bank mainly involved in lending credit facilities to its members in nature of bank transaction, treated on par with the new clause introduced in the definition of income in section 2(24)(viia) of the Act and comes under the purview of section 80P(4), with effect from April 1, 2007 ?" 3. Learned counsel for the appellants fairly concedes that the Tribunal in its impugned order has relied upon the earlier decision of this court i....

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.... 1. As defined in section 6 of Banking Regulation Act. 2. Can open savings bank account, current account, overdraft account, cash credit account, issue letter of credit, discounting bills of exchange, issue cheques, demand drafts (DD), pay orders, gift cheques, lockers, bank guarantees etc. 3. Co-operative banks can act as clearing agent for cheques, DDs, pay orders and other forms. 4. Banks are bound to follow the rules, regulations and directions issued by the Reserve Bank of India (RBI) 1. As per the bye-laws of the co-operative society. 2. Society cannot open savings bank account, current account, issue letter of credit, discounting bills of exchange, issue cheque, demand drafts, pay orders, gift cheques, lockers, bank guarantees, et....

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....ludes the primary agricultural credit society or a primary co-operative agricultural rural development bank. The Legislature did not want to deny the said benefit to a primary agricultural credit society or a primary co-operative agricultural and rural development bank. They did not want to extend the said benefit to a co-operative bank which is exclusively carrying on banking business, i.e., the purport of the amendment. If the assessee is not a Co-operative bank carrying on exclusively banking business and if it does not possess a licence from the Reserve Bank of India to carry on business, then it is not a co-operative bank. It is a co-operative society which also carries on the business of lending money to its members which is covered u....