TMI Blog2020 (2) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... an Garg, Judicial Member Assessee by: Shri C.Parida, AR Revenue by: Shri J.K.Lenka, DR ORDER This is an appeal filed by the revenue against the order of the CIT(A), Cuttack dated 25.3.2019 for the assessment year 2014-15. 2. The Revenue has raised the following grounds: 1 : On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in holding that the assessee-society is a Cooperative Society , whereas, in reality, it is a Primary Cooperative Bank within the meaning of section 80P(4) of the IT. Act read with section 56(cci) and section 56(ccv) of the Banking Regulation Act, 1949 therefore, its income is liable to tax. 2: On the facts and in the circumstances of the case, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. The AO held that the assessee enjoys the status of a Cooperative bank as explained in Part V of the Banking Regulation Act, 1949 and would, therefore, not be eligible for deduction u/s.80P(2) of the Act. 4. On appeal, the ld CIT(A) held that the assessee would be eligible for the deductions envisaged u/s.80P(2) of the Act, inter alia, observing as under: Coming now to the first condition that a Co-operative society needs to satisfy, K the provisions of the Banking Regulation Act, 1949 it is seen that a Co-operative bank is not debarred from extending its banking facilities to the general public. In other words a Co-operative society as understood in terms of section 80P(4) can accept deposits, rr.3 loans and carrying out all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bye-laws is reproduced as under: Objectives- (i) (ii) To accept following types of deposits of money from its members repayable on demand or otherwise and withdrawal, withdrawal by cheque, draft, order or otherwise for the purpose of lending or investment with permission of competent authority: 1. Savings Bank Deposit, 2. Daily Deposits (Ddhana Sambrudhi Yojana, 3. Term Deposits, 4. Current Account Deposits, 5. Biju Pattnaik Bikas Patra. (iii) . (iv) To lend or to advance money with security to members. Therefore, it is evident that the bye-laws of the assessee Co-operative society do not make an allowance for extending banking facilities to nonmembers or the general public. Neither is there any finding in the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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