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2016 (8) TMI 328 - HC - Income TaxEligibility for deduction under section 80P - Income attributable to banking activities carried on with non-members - Held that:- On a plain reading of Section 80P(2)(a)(i) that a co-operative society engaged in carrying on the business of banking and a co-operative society engaged in the business of providing credit facilities to its members have been treated differently, and in that perspective the view taken is correct when they held that there was no reason why the conjunction or should be read as and. In the case of Commissioner of Income Tax, Kolkata XVIII vs. Contai Cooperative Bank Limited question arose whether interest earned by the co-operative bank on non-statutory deposit was deductible. That question was answered by this Bench in the affirmative. For the aforesaid reasons, we are of the opinion that the learned Tribunal has taken a correct view of the matter that in order to be eligible to claim exemption u/s. 80P(2)(a)(i), a co-operative bank need not carry on the business of banking only with its members. Income attributable to banking activities carried on with non-members will also be entitled to special deduction under this section. - Decided against revenue
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