TMI Blog2016 (6) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this court in the case of CIT v. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot in I. T. A. No. 5006 of 2013 dated February 5, 2014 - [2014] 369 ITR 86 (Karn) followed by a subsequent Bench of this court in I. T. A. No. 273 of 2013 dated June 27, 2014. Therefore, he submits that the matter is covered by the decision of this court against the Revenue. 4. We may record that this court in the abovesaid decision dated June 27, 2014 in I. T. A. No. 273 of 2013 has observed thus : This appeal is preferred by the Revenue challenging the order passed by the Tribunal, wherein it is held that sub-section (4) of section 80P of the Income-tax Act, 1961 is applicable only to co-operative banks and not to credit co-operativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urrent account, issue letter of credit, discounting bills of exchange, issue cheque, demand drafts, pay orders, gift cheques, lockers, bank guarantees, etc. 3. Society cannot act clearing agent, for cheques, DDs, pay orders and other forms. 4. Society are bound by rules and regulations as specified by in the Co-operative Societies Act. Filing of returns Co-operative banks have to submit annual return to RBI every year Society has to submit the annual return to Registrar of Societies. Inspection RBI has the power to inspect accounts and overall functioning of the bank Registrar has the power to inspect accounts and over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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. Therefore, the said issue was held in favour of the assessee and against the Revenue. The said judgment answers the issue in this case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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