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2016 (5) TMI 1164 - HC - Income TaxApplicability of provisions of section 80P - whether the appellant is a "co- operative bank" which is a "primary agricultural credit society"? - Are the provisions of section 80P of the Income-tax Act excluded in terms of sub-section (4) of that section ; from application in relation to the Kerala State Co-operative Agricultural and Rural Development Bank Limited ; governed by the provisions of the Kerala State Co-operative (Agricultural and Rural Development Banks) Act, 1984 ; hereinafter, the 'CARDB Act' ? - Held that:- The condition in sub-clause (2) of clause (cciv) of section 5 of the Banking Regulation Act is to the effect that a primary co-operative society should not be one which permits admission of any other co-operative society as member, to be a "primary agricultural credit society". The provisions of the Kerala Co-operative Land Mortgage Banks Act, 1960 and of the CARDB Act show that the appellant Kerala State Co-operative Agricultural and Rural Development Bank Limited may admit a primary bank as its member. "Primary bank" as defined in section 2(h) of the CARDB Act means, among other things, a co-operative society. Therefore, the appellant does not satisfy the condition prescribed in sub-clause (2) of clause (cciv) of section 5 of the Banking Regulation Act and hence, it is not a co- operative bank which is a primary agricultural credit society. In view of the aforesaid conclusion, we answer the question formulated above holding that the assessee does not fall within sub-section (4) of section 80P of the Income-tax Act for the assessment year in question. Hence, the impugned decision of the Tribunal does not warrant interference - Decided against assessee
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