Mahapalika Kshetra Madhyamik Shikshak ... vs Income Tax Officer 21(2)(2), Mumbai on 22 October, 2019
In our considered view, the word „banking‟ means accepting for the purpose of lending or
investment of deposits of money from the public, repayable on demand or otherwise and
withdrawal by cheque, draft, order or otherwise. As in the case of a co-operative credit society
the acceptance and lending of money is only from the members and not from the public,
P a g e |9
ITA No.4306/Mum/2018 & 4582/Mum/2017 AYs.2012-13 & 2013-14
ITA Nos.4751 & 4752/Mum/2017 A.Ys.2012-13 & 2013-14
Mahapalika Kshetra Madhyamic Shikshak Sahakari Patsanstha Maryadi Vs. CIT-33
therefore, it can safely be concluded that the principal business or primary objective of the said
co-operative credit society is not the business of banking. As such, the first condition mentioned
hereinabove can safely be held to have not been satisfied by the assessee before us.Apart
there from, we find that there is a clear distinction between co-operative banks registered under
the Banking Regulations Act, 1949 and co-operative societies registered under Co-operative
Societies Act. In our considered view, the assessee which is a co-operative credit society
cannot be categorised as a co-operative bank which is governed under the Banking
Regulations Act, 1949.