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2016 (6) TMI 1226 - HC - Income TaxEntitled to deduction under section 80P(2)(a)(i) - whether assessee is a co-operative bank mainly involved in lending credit facilities to its members in nature of bank transaction treated on par with the new clause introduced in the definition of income in section 2(24)(viia) and comes under the purview of section 80P(4), with effect from April 1, 2007 - Held that:- A co-operative bank as defined under the Banking Regulation Act includes the primary agricultural credit society or a primary co-operative agricultural rural development bank. The Legislature did not want to deny the said benefit to a primary agricultural credit society or a primary co-operative agricultural and rural development bank. They did not want to extend the said benefit to a co-operative bank which is exclusively carrying on banking business, i.e., the purport of the amendment. If the assessee is not a Co-operative bank carrying on exclusively banking business and if it does not possess a licence from the Reserve Bank of India to carry on business, then it is not a co-operative bank. It is a co-operative society which also carries on the business of lending money to its members which is covered under section 80P(2)(a)(i), i.e., carrying on the business of banking for providing credit facilities to its members. The object of the aforesaid amendment is not to exclude the benefit extended under section 80P(1) to the society. See CIT v. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot [2015 (1) TMI 821 - KARNATAKA HIGH COURT] - Decided in favour of the assessee and against the Revenue.
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