THE PRINCIPAL COMMISSIONER OF INCOME TAX AND ORS. Vs. THE BELGAUM TALUKA RURAL INDUSTRIAL CO-OPERATIVE SOCIETY

JUDGEMENT

(1.) Revenue, aggrieved by the order dated 20.03.2015 passed in I.T.A. No. 429/PNJ/2014, by the Income Tax Appellate Tribunal, Panaji Bench, Panaji ('ITAT' for short) has presented this appeal by raising the following questions of law:

(2.) Whether the Tribunal is right in holding that the transaction of banking business means only with public, not appreciating the provisions of Sec. 2(24)(viia) of the I.T Act, 1961, according to which income includes the profits and gains of any business of banking (including providing credit facilities) carried on by a co -operative society with its members?

(3.) Whether the Tribunal is right in law holding that clause (ccv) of Sec. 5 of the Banking Regulation Act applies only to the co -operative society if it carries on business with public other than members and holding that even if the society is carrying on banking business with its members it will not be covered by the definition of Sec. 5(ccv) of the Banking Regulation Act, unless it has banking transaction with public when Sec. 5(ccv) of Banking Regulation Act does not specify any such condition?