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TMI Blog2016 (12) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no merit in these appeals and accordingly the appeal stands rejected - Decided against revenue - Tax Case (Appeal) No. 758 of 2016 - - - Dated:- 2-11-2016 - Nooty Ramamohana Rao And Anita Sumanth, JJ. For the Appellant : Mr. T. R. Senthilkumar Standing Counsel JUDGMENT ( Judgment of this Court was made by Nooty Ramamohana Rao, J ) This Tax Case Appeal is preferred by the Revenue under Section 260A of the Income Tax Act, 1961, calling in question the correctness of the common order passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai , in I.T.A.No.584/MDS/2013 on its Bench. The Substantial Questions of Law raised in these Tax Case Appeals are as follows:- (i) Whether in the facts and under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding credit facilities to its members, the whole of the amount of profits and gains of business attributable to such activities, becomes the total income of such a society. If, thus a Co-operative Society is providing facilities to its members alone then the income generated thereby is not liable to be taken into account and shall be deducted from its gross total income. Sub-section (4) of Section 80P has however, provided that the provisions of Section 80P shall not apply in relation to any Co-operative Bank other than a Primary Agricultural Credit Society or Primary Co-operative Agricultural and Rural Development Bank. In other words sub-section (4) of Section 80P gets attracted only to such Co-operative Societies which fall within the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd its registration is to promote the objectives for which it is established for the benefit of its members only. In contrast to the above principles, if we examine the expression 'banking' as defined in Section 5 (b) of the Banking Regulation Act, 1949 the distinction between a 'Co-operative Credit Society' and a 'Co-operative Society' carrying on banking business becomes imminently clear. The expression 'banking' has been defined in the following terms by the Banking Regulation Act, 1949. (b) banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. Thus, ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on contained under sub-section (i) of Section 80P gets attracted and consequently the Assessee is entitled to seek the deduction which has been provided for under Section 80P. 5. Sri.T.R.Senthilkumar, learned Standing Counsel for the Income Tax Department, however, is certainly right to a certain extent in his criticism about the reasoning assigned by the Tribunal in the impugned order. We see some force behind the submission of the learned Standing Counsel. The learned Standing Counsel contended that the Tribunal ought to have confined its scrutiny as to whether the Assessee answers the expression 'Co-operative Bank' or not, for it to fall within the four corners of the provision contained in sub-section (4) of Section 80P so th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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