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TMI Blog2014 (6) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... PATTINA SAHAKARI SANGHA NIYAMITHA, BAGALKOT [2015 (1) TMI 821 - KARNATAKA HIGH COURT] decided if a Co-operative Bank is exclusively carrying banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said income is liable for tax. A Co-operative bank as defined under the Banking Regulation Act includes the primary agricultural credit society or a primary co-operative agricultural rural development bank. The Legislature did not want to deny the said 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 ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is a co-operative society and not a co-operative Bank in terms of sub-section (4) of section 80P of the Income Tax Act without considering the meaning of co-operative Bank as envisaged under part V of Banking Regulation Act, 1949 wherein it is defined that co-operative Bank includes primary co-operative Bank, which is further defined as co-operative Society with the primary object of transactions of Banking business?" 3. The Tribunal in its order has set out the difference between the co-operative bank and society as under: Nature Co-operative society registered under Banking Regulation Act, 1949 Co-operative Society registered under Karnataka Cooperative Society Act, 1959 Registration Under the Banking Regulation Act, 1949 and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks. Use of words The word 'bank', 'banker', 'banking' can be used by a cooperative bank. The word 'bank', 'banker', 'banking' cannot be used by a cooperative society. 4. This Court had an occasion to consider the said question in ITA No.5006/2013 dated 05.02.2014 6 in the case of THE COMMISSIONER OF INCOME TAX vs. SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA, BAGALKOT, where, after referring to the relevant provisions of the Income Tax Act, and the banking Regulation Act, held as under: "If a Co-operative Bank is exclusively carrying banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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