TaxTMI 
TaxTMI 
2018 (7) TMI 1257
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.... Appellate Tribunal, Panaji Bench, Panaji, relating to the different assesses- respondents herein for the assessment year 2013-14 are identical, as such these appeals are disposed of by the common judgment. The substantial questions of law suggested by the revenue and considered by us are extracted here under: "1. Whether on the facts and in the circumstances of the case learned ITAT is justified in law in holding that the assessee -society is entitled to deduction under section 80P(2) of the Act? 2. Whether on the facts and in the circumstances of the case learned ITAT is justified in law in allowing deduction under Section 80P(2) to an assessee - society even though the same is covered under Section 80P(4) read with Section. 2(24)(viia) being income from providing credit facilities carried on by a co-operative society with its members?" 3. The issue involved herein is no longer res integra in view of the coordinate Bench judgments of this Court in the cases of (i) Commissioner of Income-tax vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot reported in [(2015) 56 Taxmann.com 280 (Kar)]; (ii) Shri Chandraprabhu Urban Co-operative Credit Socie....
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....ncipal object of which is to provide for long- term credit for agricultural and rural development activities." Therefore, the intention of the legislature is clear. If a Co-operative Bank is exclusively carrying on banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said income is liable for tax. A Co- operative bank as defined under the Banking Regulation Act includes the primary agricultural credit society or a primary co-operative agricultural and rural development bank. The Legislature did not want to deny the said benefits 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 this amendment. Therefore, as the assessee is not a Co- operative bank carrying on exclusively banking business and as it does not possess a licence from Reserve Bank of India to carry on business, 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 whi....
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....iding credit facilities to its members. We further note that the Hon'ble Bombay High Court was called upon to decide the identical issue and has discussed the issue at length in the case of Pr.CIT Vs. Goa PWD Staff Co-operative Credit Society Ltd. and others wherein the view taken by their lordships in the case of M/s The Quepem Urban Co-Operative Credit Ltd. has been followed. For ready reference the same is reproduced hereunder: 6. We have given our thoughtful consideration to the rival contentions and with the assistance of the learned counsel, we have also gone through the said judgment and the relevant provisions of the said Act. On going through the said judgment dated 17.04.2015 in the case of M/s. The Quepem Urban Co-Operative Credit Society Ltd., (Supra), this Court has observed at Para 9 thus: "9. There is no dispute between the parties that the appellant is a cooperative society as the same is: registered under the Co-Operative Societies Act. The appellant is claiming deduction of income earned on providing credit facilities to its members as provided under Section 80P(2) (a)(i) of the Act. It is appellant's case that, it is not ....
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....appellant has not pointed out any material which has not considered or that there is any misreading of the evidence whilst coming to such conclusions. The contention of Ms. A. Desai, learned counsel appearing for the appellant that in view of the definition of the word "income" 'as provided in Section 2(24) (vila), 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 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 facilities to the non members, we find that the observations in the said judgment in the case of M/s. The Quepem Urban Co-operative Credit Society Ltd., (supra) would be squarely applicable to the facts of the present case. As such as no other contentions have be....