The Tax Publishers2020 TaxPub(DT) 4599 (Ctk-Trib)

INCOME TAX ACT, 1961

Section 80P(2)(a)(i)

Since assessee, credit co-operative society, did not possess banking licence from RBI which is essential for an entity to engage in banking activities, assessee-society was not a primary Co-operative Bank within the scope of the Banking Regualtion Act, 1949 and, therefore, it was eligible for deductions under section 80P(2).

Deduction under section 80P(2)(a)(i) - Co-operative society - AO treated assessee-society not possessing banking licence from RBI as co-operative bank -

Assessee, credit co-operative society registered under the Odisha Co-operative Society Registration Act, 1962, claimed deduction under section 80P(2)(a)(i). AO denied deduction on the ground that assessee was a 'Co-operative Bank' within meaning prescribed under section 80P(4). Held: For a Co-operative society to be called a primary Cooperative Bank, all the three conditions laid down in clause 5(CCV) of Banking Regulation Act, 1949 have to be satisfied cumulatively. Failure to meet any one condition would imply that the co-operative society in question is not a Primary Co-operative Bank. In the instant case. Assessee did not possess banking licence from RBI which is essential for an entity to engage in banking activities. Accordingly assessee society was not a primary Co-operative Bank within the scope of the Banking Regualtion Act, 1949 and, therefore, it was eligible for deductions under section 80P(2).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-2015


INCOME TAX ACT, 1961

Section 80P(2)(a)(i)

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