CA R.B. POPAT
Co-Operative Credit Society is a Bank if it Satisfies the conditions of A Primary Bank and Not Entitled to Sec. 80P(2)(a)(i) Benefit R.W. Sec. 80P(4)
From the reading of Sec. 80P(4) it is apparent that this section denies deduction to a co-operative bank other than a primary agricultural credit society or primary co- operative agricultural and rural development bank.
The provisions of Sec. 80P(4) was introduced in the statute by the Finance Act, 2006 w.e.f. 1.4.2007.
The explanation to the section defines the co-operative bank and primary agricultural credit society to have the same meaning as assigned to them in Part- V of the Banking Regulation Act, 1949.
4.1 Now, the question before us is whether the Assessee is a co- operative bank or not. “Co-operative Bank” is defined in Part V of the Banking Regulations Act, 1949 as under :-
“Co-operative bank” means a state co-operative bank, a central co-operative bank and a primary co-operative bank:”
“(CCV)” primary co-operative bank” means a co-operative society, other than a primary agricultural credit society-
(1) the primary object or principal business of which is transaction of banking business:
(2) the paid-up share capital and reserves of which are not less than one lakh of rupees: and
(3) the bye-laws of which do not permit admission of any other co-operative society as a member:
Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such Co-operative society out of funds provided by the State Government for the purpose.”
16…….a primary co-operative bank as all the three basic conditions are complied with, therefore, it is a co-operative bank and the (Asst. Year: 2009-10) provisions of Sec. 80P(4) are applicable in the case of the Assessee and Assessee is not entitled for deduction u/s 80P(2)(a)(i).