TMI Blog2011 (4) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... brought into statute 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 - Since the assessee is a cooperative society and not a cooperative bank, the provisions of section 80P(4) will not have application and it is entitled to deduction u/s 80P(2)(a)(i) of the Act – thus, the order of CIT(A) is correct and upheld – Decided against Revenue. - ITA No.1069/Bang/2010 - - - Dated:- 8-4-2011 - Shri George George K, J.M. And Shri A. Mohan Alankamony, A.M,JJ. For the Appellant : Shri B. Arulappa, Addl. CIT For the Respondent : Shri S. Ranganath, FCA. ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motto of the assessee is lending for its members, which is in the nature of banking transaction and comes under the purview of 80-P(4) of the Act [inserted in Finance Act, 2006 w.e.f. 1/4/2007]. 8. The learned AR, on the other hand, reiterated the submissions made before the authorities below and supported the finding/conclusion of the CIT(A). 9. We have heard the rival submissions and perused the material on record. The assessee was denied the deduction u/s 80- P(2)(a)(i) of the Act for the reason of introduction of sub section 4 to section 80P. Section 80P(4) reads as follows:- (4) The provisions of this section shall not apply in relation to any cooperative bank other than a primary agricultural credit society or a primary cooper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tween a cooperative bank and a cooperative society are as follows:- 9.3 If the intention of the legislature was not to grant deduction u/s 80P(2)(a)(i) to cooperative societies carrying on the business of providing credit facilities to its members, then this section would have been deleted. The new proviso to section 80P(4) which is brought into statute 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. Since 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 and there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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