Society allowing Loan to non-members cannot claim deduction U/s. 80P

ITO Vs. Shri Bapooji Pattin Souhard Sahakari Niyamit (ITAT Bangalore) The only issue in the present appeal is whether the respondent- assessee co-operative society is entitled for deduction u/s. 80P of the Act. The respondent- assessee is registered under the Karnataka Co-operative Societies Act. According to the respondent- assessee, the primary activity of the assessee is only to provide credit facilities to its members and therefore it is not a co-operative bank. The AO had denied the benefit of section 80P on the ground that it is a co-operative bank and hit by the provisions of sub-sectio...