Income-tax Circular - Income Tax - 319/1982

Income-tax Circular Circular No. 319 Dated 11/1/1982 To All Commissioners of Income-tax, Sir, A question has arisen whether Regional Rural Banks (to which the provisions of the Regional Rural Banks Act, 1976, apply) can be treated as Co-operative Societies for the purpose of section 80P of the Income-tax Act, 1961. 2. There is a specific provision, namely, section 22 in that Act, which is to the following effect:- "For the purpose of the Income-tax Act, 1961, or any other enactment for the time being in force relating to only tax on income, profits or gains, a Regional Rural Bank, shall be deemed to be a Co-operative Society." 3. Therefore, the provisions of section 80P of the Income-tax Act, 1961, will also be applicable in respect of Regional Rural Banks. In this view deductions admissible under section 80P(2)(a)(i) have to be allowed, in making income-tax assessments of these banks. 4. This may be brought to the notice of all officers working in your charge. Yours faithfully, V.B. Srinivasan Secretary, Central Board of Direct Taxes.