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TMI Blog2016 (8) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... perative Bank Limited question arose whether interest earned by the co-operative bank on non-statutory deposit was deductible. That question was answered by this Bench in the affirmative. For the aforesaid reasons, we are of the opinion that the learned Tribunal has taken a correct view of the matter that in order to be eligible to claim exemption u/s. 80P(2)(a)(i), a co-operative bank need not carry on the business of banking only with its members. Income attributable to banking activities carried on with non-members will also be entitled to special deduction under this section. - Decided against revenue - ITA 476 of 2008 - - - Dated:- 18-7-2016 - Girish Chandra Gupta And Arindam Sinha, JJ. For the Petitioner : Mr. P. K. Bhowmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... banking activities carried on with non-members will also be entitled to special deduction under this section. The aggrieved revenue has once again come up in appeal. The question of law, formulated on 7th August, 2008 when the appeal was admitted, reads as follows: Whether on the facts and circumstances of the case the Income Tax Appellate Tribunal was justified in law in treating the interest income from nonmembers, from nominal member, from trading in securities and other receipts to be eligible for deduction under Section 80P of the Income Tax Act whereas the provision of section 80P(2) of the Income Tax Act clearly lays down that only cooperative societies shall be eligible for deduction under section 80P who are carrying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee on account of interest from non-members or from nominal members or from trading in securities and other receipts is also eligible for deduction. Mr. Bhowmick, learned advocate, has not disputed the aforesaid submissions of Mr. Khaitan. We also find on a plain reading of Section 80P(2)(a)(i) that a co-operative society engaged in carrying on the business of banking and a co-operative society engaged in the business of providing credit facilities to its members have been treated differently, and in that perspective the view taken by the Hyderabad Bench of the learned Tribunal is correct when they held that there was no reason why the conjunction or should be read as and . In the case of Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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