Navigating Tax Exemptions u/s 80P: The Supreme Court's Verdict on Cooperative Societies vs. Banks

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....pondent under the Income Tax Act, 1961. Central to this legal debate is the interpretation of Section 80P(4) regarding the classification of the respondent as a cooperative society rather than a cooperative bank, affecting its tax exemption status. Background The respondent, a cooperative society, sought tax exemptions under Section 80P(2) of the Income Tax Act, which provides specific deduction....

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....intent to support and promote cooperative societies, especially those involved in aiding their members without engaging in commercial banking activities. It highlighted precedents and regulatory distinctions that clearly differentiate cooperative societies from cooperative banks, particularly in their governance, regulatory oversight, and the nature of banking services provided. Conclusion This ....