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TMI Blog2016 (5) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(2)(a)(i) of the Income Tax Act. The learned Counsel for the appellant submits that though the CIT(Appeals) has come to the conclusion that the respondent/assessee is not a co-operative bank nevertheless, the Income Tax Appellate Tribunal whilst examining the appeal preferred by the appellant has come to the conclusion that the respondent/assessee were not carrying out banking business. The learned Counsel further points out that CIT(Appeals) has come to the conclusion that the respondent/assessee did not satisfy one of conditions of the definition of a primary co-operative Bank. The learned Counsel has extensively taken us through the impugned order of the Appellate Tribunal to point out that the Tribunal has found that the respondent/a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal in the case of M/s. The Quepem Urban Co-operative Credit Society Ltd., (supra), the Division Bench of this Court, wherein one of us (F.M. Reis, J.) was a party, has observed at paras 9, 10, 11, 12, and 13, thus : "9. There is no dispute between the parties that the appellant is a cooperative society as the same is registered under the Co-operative Societies Act. The appellant is claiming deduction of income earned on providing credit facilities to its members as provided under Section 80P(2)(a)(i) of the Act. It is appellant's case that, it is not carrying on the business of the banking. Consequently, not being a co-operative bank the provisions of Section 80P(4) of the Act would not exclude the appellant from claiming t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 5b of the Banking Regulation Act, held that the principal business of the Appellant is Banking. Section 5b of the Banking Regulation Act defines banking to mean accepting of deposits for the purpose of lending or investment, of deposit of money from the public repayable on demand or otherwise. The impugned order juxtaposes the above definition with the finding of fact that the appellant did deal with non members in a few cases by seeing deposits. This read with Bye law 43 leads to the conclusion that it is carrying on banking business. This fact of accepting deposits from people who are not members has been so recorded by the CIT(A) in his order dated 15 July, 2014. Before the Tribunal also the appellant did not dispute the fact tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly there is no occasion to deal with the same as that is not the basis on which the impugned order holds that it is a Primary Cooperative Bank. 11. In the above view, the alternative contention of the appellant that it is not in the business of Banking as the sine quo non to carry on banking business is a licence to be issued by the Reserve Bank of India, which it admittedly does not have, is not being considered. 12. So far as condition No.3 of the definition/meaning of Primary Cooperative Bank as provided in Section 5(ccv) of the Banking Regulation Act is concerned, the same requires the Bye laws of society to contain a prohibition from admitting any other cooperative society as its member. In fact the bye-laws of the appellant society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how any such prohibition in the bye laws of the appellant. Thus even the aforesaid qualifying condition (3) for being considered as a primary cooperative bank is not satisfied. Thus, the three conditions as provided under Section 5 (CVV) of the Banking Regulation Act, 1949, are to be satisfied cumulatively and except condition (2) the other two qualifying conditions re not satisfied. Ergo, appellant cannot be considered to be a co-operative bank for the purposes of Section 80P(4) of the Act. Thus, the appellant is entitled to the benefit of deduction available under Section 80P(2)(a)(i) of the Act. 13. The contention of Ms. Dessai, learned Counsel for the revenue that the appellant is not entitled to the benefit of Section 80P(2)(a)(i) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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