TaxTMI 
TaxTMI 
2018 (12) TMI 1915
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....pellant above named begs to submit as follows in addition to the grounds that may be urged at the time of hearing : 1. The Assessing Officer as well as the Appellate authority failed to consider that the petitioner in appeal is a co-operative society engaged exclusively in providing credit facilities to its members and further they have grossly erred in holding that the appellant is a Primary Co-operative Bank and thus making an addition to the returned income of the appellant to the tune of Rs. 24,44,970/- and demanding tax of Rs. 7,71,930/- which otherwise qualifies for full deduction u/s. 80P(2)(a)(i) of the Act. 2. The 1st Appellate authority is not a fact finding authority and unfortunately instead of deciding the appeal on merits,....
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....eported in 397 ITR 1. He submitted that the facts of present case are different and therefore, in the facts of present case, it cannot be said that the assessee is a co-operative bank. At this juncture, the bench pointed out that as per Para no. 24 of this judgment of Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. vs. ACIT (supra), it was noted that in order to do the business of a co-operative bank, it is imperative to have a license from the Reserve Bank of India. But in that case, the RBI has itself clarified that the business of the assessee does not amount to that of a cooperative bank. The bench pointed out that in the present case also, if the assessee produces a certificate from RBI on similar line,....
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....in violations of the provisions of the MACSA under which it is formed. It is pointed out by the Assessing Officer that the assessee is catering to two distinct categories of people. The first category is that of resident members or ordinary members. There may not be any difficulty as far as this category is concerned. However, the assessee had carved out another category of 'nominal members'. These are those members who are making deposits with the assessee for the purpose of obtaining loans, etc. and, in fact, they are not members in real sense. Most of the business of the appellant was with this second category of persons who have been giving deposits which are kept in Fixed Deposits with a motive to earn maximum returns. A portion of the....