TaxTMI 
TaxTMI 
2012 (12) TMI 1147
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....r the CIT(A) is justified in granting deduction under section 80P(2)(a)(i) of the Act. 3. Brief facts of the case are as follows:- The assessee is a credit cooperative society providing credit facilities to its members. For the assessment year 2008-09, return of income was filed on 7/10/2008 declaring NIL income after claiming exemption under section 80P of the Income Tax Act, 1961. The scrutiny assessment was completed under section 143(3) of the Act vide order dated 22/12/2010 determining the total income at Rs. 61,03,934/-. In the scrutiny assessment completed, the Assessing Officer made the following additions:- a) Inadmissible expenses - Rs. 4,66,472/- b) The claim of the appellant for deduction of its entire income under s....
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....Regulation Act 1949. After carefully considering the submissions made by the A.R. of the appellant, I found that the appellant is not a bank but only a Credit Co-operative Society. Under section 56 in Part-V of the Banking Regulation Act 1949, the definition of cooperative bank and cooperative credit society are given as under:- "(CC-i) : Co-operative Bank means a state co-operative bank, a central co-operative bank and a primary co- operative bank. (CC-II) : Co-operative credit society means a co- operative society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank. 4.1 From these definitions it is clear that a cooperative bank is different from a cooper....
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....rative bank and cooperative credit society in the Banking Regulation Act, 1949 (section 56) read as follows:- "(CC-i) : Co-operative Bank means a state co-operative bank, a central co-operative bank and a primary co- operative bank. (CC-II) : Co-operative credit society means a co- operative society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank. 9.1 From the above definition, it is clear that a cooperative bank is different from a cooperative credit society and the provisions of section 80P(4) is applicable only to cooperative banks. The assessee admittedly is involved in providing credit facilities to its members and not to the general public and th....
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....s 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 "cooperative society". The existing sub-section 80P(2)(a)(i) shall be applicable to a cooperative society carrying on cre....
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....Filing of returns Cooperative banks have to submit annual return to RBI every year. Society has to submit the annual return to Registrar of Societies. Inspec- tion 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 by a cooperative society. 9.3 If the intention of the legislature was not to grant deduction....