TMI Blog2012 (12) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... a)(i) of the Act. 3. Brief facts of the case are as follows:- The assessee is a credit cooperative society providing credit facilities to its members. For the assessment year 2008-09, return of income was filed on 7/10/2008 declaring NIL income after claiming exemption under section 80P of the Income Tax Act, 1961. The scrutiny assessment was completed under section 143(3) of the Act vide order dated 22/12/2010 determining the total income at ₹ 61,03,934/-. In the scrutiny assessment completed, the Assessing Officer made the following additions:- a) Inadmissible expenses - ₹ 4,66,472/- b) The claim of the appellant for deduction of its entire income under section 80P(2)(a)(i) was rejected and the income declared by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions made by the A.R. of the appellant, I found that the appellant is not a bank but only a Credit Co-operative Society. Under section 56 in Part-V of the Banking Regulation Act 1949, the definition of cooperative bank and cooperative credit society are given as under:- (CC-i) : Co-operative Bank means a state co-operative bank, a central co-operative bank and a primary co- operative bank. (CC-II) : Co-operative credit society means a co- operative society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank. 4.1 From these definitions it is clear that a cooperative bank is different from a cooperative credit society and the provisions of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the Banking Regulation Act, 1949 (section 56) read as follows:- (CC-i) : Co-operative Bank means a state co-operative bank, a central co-operative bank and a primary co- operative bank. (CC-II) : Co-operative credit society means a co- operative society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank. 9.1 From the above definition, it is clear that a cooperative bank is different from a cooperative credit society and the provisions of section 80P(4) is applicable only to cooperative banks. The assessee admittedly is involved in providing credit facilities to its members and not to the general public and therefore, as rightly pointed out by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said section shall not be available to any cooperative bank other than a primary agricultural credit society or rural development bank. For the purpose of the said sub section, cooperative bank shall have the meaning assigned to it in part V of the Banking Regulation Act, 1949. In Part V of the Banking Regulation Act, cooperative bank means a State Cooperative Bank, a Central Cooperative Bank and a Primate Cooperative Bank. 9.2 From the above section, it is clear that the provisions of section 80P(4) has got its application only to cooperative banks. Section 80P(4) does not define the word cooperative society . The existing sub-section 80P(2)(a)(i) shall be applicable to a cooperative society carrying on credit facility to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders and other forms. 4. Society are bound by rules and regulations as specified by in the cooperative societies act. Filing of returns Cooperative banks have to submit annual return to RBI every year. Society has to submit the annual return to Registrar of Societies. Inspec- tion RBI has the power to inspect accounts and overall functioning of the bank. Registrar has the power to inspect accounts and overall functioning of the bank. Part V Part V of the Banking Regulation Act is applicable to cooperative banks. Part V of the Banking Regulation Act is not applicable to coopera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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