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2016 (11) TMI 1462 - AT - Income TaxExemption/deduction u/s 80P(2)(a)(i) - interest earned from surplus fund parked in FDs with other cooperative banks - allowability of relief u/s 80P in respect of the income of the assessee when the assessee is a 'credit cooperative society - Held that:- Such lending activities do not constitute banking activities as the same are transacted between the cooperative society and the members of the society. Since, no public is involved the definition of 'banking' does not cover such activities. As such, there is no Reserve Bank of India's approval for conducting such banking activities in this case As the assessee demonstrated that the members of the Credit Cooperative Society do not constitute “public” and there is no depositing, withdrawal by cheque or draft etc. After considering the said judgment of the Hon'ble jurisdictional High Court in the case of Quepem Urban Cooprative Credit Society [2015 (6) TMI 573 - BOMBAY HIGH COURT] we are of the opinion that decision of the CIT (A) is fair and reasonable and it does not call for any interference. Accordingly, issue raised in the Revenue's appeal is dismissed.
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