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2022 (4) TMI 106 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - AO held a conviction that as the assessee was hit by the provisions of Sec. 80P(4) of the Act, therefore, it was not eligible for claim of deduction under Sec. 80P(2)(a)(i) - HELD THAT:- We are of the considered view that as the assessee is a co-operative credit society and not a co-operative bank, therefore, it would not be hit by the provisions of Sec. 80P(4) of the Act. As the assessee before us is a co-operative credit society and not a co-operative bank, therefore, it would not be hit by the provisions of Sec. 80P(4) as had been made available on the statute by the Finance Act, 2006 w.e.f 01.04.2007. In fact, as observed by us hereinabove, it is absolutely mandatory for a co-operative society to seek a licence from the Reserve Bank of India to form and operate as a co-operative bank. A perusal of Circular No. 312 of the Reserve Bank of India reveals the process involved for conversion of a co-operative credit society into a primary co-operative bank. Admittedly, in the case before us, as the assessee being a co-operative credit society is neither authorized nor had undertaken any of the banking business activities as are carried out by a co-operative bank, but had only provided financial assistance/credit to its members, therefore, it can safely be concluded that it cannot be held to be a co-operative bank - we are unable to concur with the view taken by the A.O which thereafter had been sustained by the CIT (Appeals). We, thus, not finding favor with the view taken by the lower authorities set-aside the order of the CIT(A) and vacate the disallowance made by the A.O. - Appeal of assessee allowed.
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