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2014 (2) TMI 990 - AT - Income TaxClaim of Deduction u/s 80P(2)(a)(i) of the Act - Co-operative society – Whether the gross total income of a cooperative society includes income from carrying on the business of banking or providing credit facilities to its members and is allowed as deduction or not – Held that:- The decision in ACIT, Circle 3(1), Bangalore v. M/s. Bangalore Commercial Transport Credit Co-operative Society Ltd. [2011 (4) TMI 1222 - ITAT BANGALORE] followed - section 80P(4) is applicable only to cooperative banks and not to credit cooperative societies - The intention of the legislature of bringing in cooperative banks into the taxation structure was mainly to bring in par with commercial banks - the assessee is a cooperative society and not a cooperative bank, the provisions of section 80P(4) will not have application in the assessee’s case – thus, it is entitled to deduction u/s 80P(2)(a)(i) of the Act. The Revenue’s contention cannot be accepted that section 80P(4) would exclude not only the cooperative banks other than those fulfilling the description contained therein but also credit societies, which are not cooperative banks – thus, the assessee is not a credit co-operative bank but a credit cooperative society - Exclusion clause of sub-section(4) of section 80P would not apply – Decided against Revenue.
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