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TMI Blog2016 (9) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... these Tax Case Appeals are as follows:- (i) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right and justified in allowing the claim of deduction u/s 80P to assessee on the basis of a decision in the case of the Coimbatore District Central Co-operative Bank which was on the issue of tax deduction u/s 194A? (ii) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal is justified and correct in granting deduction u/s 80P to assessee after coming to conclusion that assessee is co-operative society carrying on banking business? (iii) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Section 80P is however, provided that the provisions of Section 80P shall not apply in relation to any Co-operative Bank other than a Primary Agricultural Credit Society or Primary Co-operative Agricultural and Rural Development Bank. In other words sub-section (4) of Section 80P gets attracted only to such Co-operative Societies which fall within the ambit of the expression 'Co-operative Bank'. Therefore, the whole question which is required to be examined in the present cases is whether the Assessee falls within the ambit and four corners of the expression 'Co-operative Bank' or it is merely a credit society which is carrying on its business by making available credit facilities to its members. 4. If we spare a look ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... becomes imminently clear. The expression 'banking' has been defined in the following terms by the Banking Regulation Act, 1949. "(b) "banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise." Thus, banking means accepting of deposits of money from the public repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise and such acceptance of money is intended for the purpose of lending or investment by itself. Therefore, the crucial expression relevant for making one answer the description of banking is that it is capable of accepting money from the general public b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. We see some force behind the submission of the learned Standing Counsel. The learned Standing Counsel contended that the Tribunal ought to have confined its scrutiny as to whether the Assessee answers the expression 'Co-operative Bank' or not, for it to fall within the four corners of the provision contained in sub-section (4) of Section 80P so that it will not be in a position to derive the benefit of the main part contained under Sub-Section (1) and (2). Instead of confining its scrutiny the Tribunal has made certain observations which fall out of the purview while examining the issue in the perspective of Section 80P of the Act and to that extent, the order of the Tribunal does warrant interference. 6. However, in view of ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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