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2018 (6) TMI 1104 - AT - Income TaxDenying the claim of deduction u/s 80P(2)(a)(i) - assessee were doing the business of banking, and therefore, in view of insertion of provisions of section 80P(4) the assessee were not entitled to deduction u/s 80P(2)(a)(i) - AO jurisdiction to resolve / decide the issue -Held that:- The undisputed facts are that the assessee in these cases are primary agricultural credit societies, registered as such under the Kerala Co-operative Societies Act. In the case of THE INCOME TAX OFFICER WARD-1, KASARAGOD VERSUS M/S. THE CHENGALA SERVICE CO-OP BANK LTD. [2018 (4) TMI 339 - ITAT COCHIN] had categorically held that when a primary agricultural credit Society is registered as such under the Kerala Co-operative Societies Act, 1969, such society is entitled to the benefit of deduction u/s 80P(2) of the Income-tax Act. Assessing Officer was not competent and did not possess the jurisdiction to resolve / decide the issue as to whether the assessee was a 'Primary Agricultural Credit Society' or a 'Co-operative bank', within the meaning assigned to it under the provisions of the Banking Regulation Act and to take a contrary view especially in view of the Explanation provided after the clause (ccvi) of section 5 r.w.s Section 56 of the Banking Regulation Act. - Decided in favour of assessee.
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