JUDGMENT

Bharucha, J.-These appeals have been referred to a Bench of three learned Judges, in view of the apparent conflict between the two judgments (of Benches of two learned Judges of this Court) in M.P. Cooperative Bank Limited, Jabalpur v. Additional Commissioner of Income Tax, Madhya Pradesh, Bhopal1 and Commissioner of Income Tax, Bangalore v. Bangalore District Cooperative Central Bank Limited2.

2. The question in appeal relates to, what was Section 80(i) and is now Section 80-P of the Income Tax Act, 1961, which reads thus:

"80-P. (1) Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.

(2) The sums referred to in sub-section (1) shall be the following, namely:

(a) in the case of a cooperative society engaged in-

(i) carrying on the business of banking or providing credit facilities to its members, or

(ii) - (vii)

the whole of the amount of profits and gains of busine