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2014 (10) TMI 390 - ITAT COCHINDenial of claim of exemption u/s 80P(2)(a)(i) – Co-operative society as per Kerala Co-operative Societies Act – AO was of the view that the assessee has not fulfilled the main object of providing financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities – Held that:- Following the decision in Kunnamangalam Co-operative Bank Ltd. [2014 (10) TMI 350 - ITAT COCHIN] - the Assessee is carrying on banking business and for all practical purposes it acts like a co-operative bank - The Society is governed by the Banking Regulations Act - the society being a co-operative bank providing banking facilities to members is not eligible to claim deduction u/s 80P(2)(a)(i) after the introduction of subsection (4) to section 80P - until and unless that condition is satisfied, it cannot be said that the prime object or principal business of the assessee is banking business. The assessee cannot be regarded to be primary cooperative bank and in consequence thereof, it cannot be a co-operative bank as defined under part V of the Banking Regulation Act 1949 - the provisions of section 80P (4) read with explanation there under will not be applicable in the case of the assessee -The assessee will be entitled for the deduction u/s 80P(2)(a)(i) - the assessee is a primary cooperative bank and therefore hit by the provisions of section 80P(4) - Clause (c) of section 80P(2) is intended to cover receipts from sources other than the actual conduct of the business but attributable to an activity which results in profits and gains - Letting out of surplus space in the building owned and used by the assessee is not such an activity falling under clause (c) - the assessee is not entitled for deduction u/s. 80P of the Act – Decided against assessee.
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