2020 (2) TMI 1352

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....ality, it is a "Primary Cooperative Bank" within the meaning of section 80P(4) of the IT. Act read with section 56(cci) and section 56(ccv) of the Banking Regulation Act, 1949 & therefore, its income is liable to tax. 2: On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in holding that the assessee-society does not satisfy all the conditions of definition of a "Co-operative Bank" given in Part-V of the Banking Regulation Act, 1949, ignoring Clause - 9 of the Bye-laws of the assessee-society. 3 : On the facts and in the circumstances of the case, the CIT(Appeals) has erred in granting deduction u/s 80P(2)(a)(i) to the assessee, which is available only to "Co-operative Society", but not to a ....

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....satisfy, K the provisions of the Banking Regulation Act, 1949 it is seen that a Co-operative bank is not debarred from extending its banking facilities to the general public. In other words a Co-operative society as understood in terms of section 80P(4) can accept deposits, rr.3 loans and carrying out all banking operations even in respect of persons who are i members of the Co-operative society. This is in sharp contrast to the provisions of section -80P [2] where the benefit of the deduction can be availed only by a Co-operative society engaged in the business of banking or providing credit facilities to its members. This is a crucial distinction that sets apart a Co-operative society from a Co-operative Bank However, in the assessment or....

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....sits, 5. Biju Pattnaik Bikas Patra. (iii).... (iv) To lend or to advance money with security to members. Therefore, it is evident that the bye-laws of the assessee Co-operative society do not make an allowance for extending banking facilities to nonmembers or the general public. Neither is there any finding in the assessment order u/s.143[3) for A.Y.-2014-15 dt 27/12/2016 to the extent that the assessee society has been accepting deposits or lending money from/to the public at large. Under these circumstances, the AO's assertion that the assessee co-operative society is engaged in the business of banking is perverse as it is not supported by any evidence. Now, in order for a co-operative society to be....