TMI Blog2014 (6) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... a primary co-operative agricultural rural development bank. The Legislature did not want to deny the said benefit to a primary agricultural credit society or a primary co- operative agricultural and rural development bank. They did not want to extend the said benefit to a co-operative bank which is exclusively carrying on banking business i.e., the purport of the amendment. If the assessee is not a Co-operative bank carrying on exclusively banking business and if it does not possess a license from the Reserve Bank of India to carry on business, then it is not a Co-operative bank. It is a Co-operative society which also carries on the business of lending money to its members which is covered under Section 80P(2)(a)(i) i.e., carrying on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s right in holding that assessee is entitled for deduction under Section 80P ignoring provisions of Section 80P(4) read with Section 2(24)(viia) introduced in statute with effect from 01.04.2007? (ii) Whether the Tribunal is right in cancelling order passed under Section 263 on the ground that the assessment order passed is not prejudicial to the interests of revenue, though detailed reasons were recorded in order under Section 263 as to how the assessment order passed is prejudicial to interest of revenue? 3. Insofar as the first question of law is concerned, this Court had an occasion to consider the said question in ITA No.5006/2013 dated 05.02.2014 in the case of THE COMMISSIONER OF INCOME TAX vs. SRI BILURU GURUBASAVA PATTINA SA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue. 4. Insofar as the second question of law is concerned, in the aforesaid judgment this Court has held, when status of the assessee is a co-operative society and not a co-operative bank, the order passed by the Assessing Authority extending the benefit of the exemption from payment of tax under Section 80P(2)(a)(i) of the Ac t is correct. There is no error. When there is no error, question of order being prejudicial would not arise and therefore, the order passed by the revisional authority is not at all with jurisdiction and rightly the tribunal entertained the appeal against this order and set aside the said order. The same holds good even in this case. 5. Thus, the substantial question of law is answered in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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