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TMI Blog2015 (10) TMI 1434X X X X Extracts X X X X X X X X Extracts X X X X ..... banking business, then income derived from the said business cannot be deducted in computing the total income of the assessee, as the assessee is not a Cooperative Bank carrying on exclusively banking business and there is no finding that it possess a licence from RBI to carryon business. It is not a Cooperative Bank, it is a Cooperative Society which also carries on business of lending money to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the deduction claimed u/s. 80P(2)(a)(i) of the Act. 3. The assessee is a Cooperative Society registered under the Karnataka State Cooperative Societies Act. The main object of the society is to accept the deposits and to provide financial accommodation to the Members of the society. It was, therefore, claimed that the society is entitled to deduction u/s. 80P(2) of the Act. The Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the assessee has obtained any banking licence. The business of the assessee is to provide credit facilities to its Members. Since, there is no finding that the assessee can carry out any banking business, clearly establishes that it is not a Cooperative Bank. Sec. 80P of the Act deals with the deduction of income of the society. In case of any assessee being a Cooperative Society, the whol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety which also carries on business of lending money to its Members which is covered u/s. 80P(2)(a)(i). For this proposition, we draw support from the decision of the Hon'ble Karnataka High Court in the case of Billuru Gurubasava Pattinas Sahakari Sangha Niyamat (supra), we accordingly, set aside the findings of the Ld. CIT(A) and direct the Assessing Officer to allow deduction u/s. 80P(2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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