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TMI Blog2018 (12) TMI 1915X X X X Extracts X X X X X X X X Extracts X X X X ..... business of the assessee in reasonable time. As noted in CITIZEN COOPERATIVE SOCIETY LIMITED [ 2017 (8) TMI 536 - SUPREME COURT] the assessee was engaged in the activity of granting loans to general public as well. This was also noted in the same Para that most of the business of the assessee was with the second category of persons who were noted to be nominal members and from them, the assessee was getting deposits which were kept in Fixed Deposits with a motive to earn maximum returns and a portion of these deposits was utilized to advance gold loans etc. to members of the first category i.e. ordinary members. Hence, even if it is found that assessee is not a co-operative bank, then also, this factual aspect of the present case shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aginary facts as attributable to the activities of the appellant under Para 5.4 of Annexure - D order and dismissed appeal relying on the decision of the Hon'ble Apex Court in The Citizen Cooperative Society Ltd - Civil Appeal No. 10245 of 2017. The appellant submits that the findings of Appellate authority is opposed to the judgment of Hon'ble High Court of Karnataka in ITA No. 100043 100045/ 2014 - Sri Chandraprabhu Urban Credit Cooperative Society Ltd. Nippani Vs. Income Tax Officer, Ward-1, Nipani. 3. The appellant submits, it is doing its business exclusively with its members well within the framework of its approved bye-laws and the provisions of Karnataka Co-operative Societies Act, 1959 / Rules framed thereunder. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not a co-operative bank. In reply, it was submitted by the ld. AR of assessee that if the matter is restored back to the file of AO / CIT (A), the assessee will obtain such certificate from RBI regarding the nature of business. The ld. DR of revenue supported the order of CIT(A). 4. We have considered the rival submissions. For ready reference, we first reproduce paras 24 and 25 of this judgment of Hon ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT (supra). 24) Undoubtedly, if one has to go by the aforesaid definition of co-operative bank , the appellant does not get covered thereby. It is also a matter of common knowledge that in order to do the business of a co-operative bank, it is impera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gold loans, etc. to the members of the first category. It is found, as a matter of fact, that he depositors and borrowers are quiet distinct. In reality, such activity of the appellant is that of finance business and cannot be termed as cooperative society. It is also found that the appellant is engaged in the activity of granting loans to general public as well. All this is done without any approval from the Registrar of the Societies. With indulgence in such kind of activity by the appellant, it is remarked by the Assessing Officer that the activity of the appellant is in violation of the Co-operative Societies Act. Moreover, it is a cooperative credit society which is not entitled to deduction under Section 80P(2)(a)(i) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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