S.80P(4) of Income Tax Act only excludes Co-op Banks Functioning as Commercial Banks: ITAT

The Income Tax Appellate Tribunal (ITAT) clarified that co-operative banks that operate as commercial banks are excluded from the benefits under Section 80P(4) of the Income Tax Act. This section grants tax exemptions to co-operative societies, but banks functioning in a commercial capacity, similar to private or public banks, do not qualify. The decision differentiates between traditional co-operative societies and modern co-operative banks, which operate on a commercial scale, thereby preventing tax benefits from being extended to entities with a profit-driven approach.