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TMI Blog2016 (5) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... "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' ?" 2. We are dealing with the assessment year 2007-08 or thereafter, and are therefore concerned with the impact of the insertion of sub-section (4) of section 80P in the Income-tax Act with effect from April 1, 2007. We proceed accordingly. 3. In this appeal, we do not propose to consider whether the appellant would be entitled to different deductions with respect t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Revenue made copious reference to the relevant provisions of the aforenoted legislations and the Banking Regulation Act, 1949, "BR Act", for short ; as well as the National Bank for Agricultural and Rural Development Act, 1981, "NABARD Act", for short ; and the provisions of the Kerala Co-operative Societies Act, 1969, hereinafter referred to as "KCS Act". Certain provisions of the Reserve Bank of India Act, 1934, "RBI Act", for short, were also referred to. 7. Sub-section (1) of section 80P of the Income-tax Act authorises deductions in respect of co-operative societies ; in terms of sub-section (2) of section 80P. That is a provision made in the case of an assessee being a co- operative society. Sub-section (4) of section 80P pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that what has been done through Part V of that Act is to prescribe the modifications regarding the application of that Part to co-operative societies. By the effect of section 56 among Part V of the Banking Regulation Act, among other things ; section 5 of the Banking Regulation Act, which is the interpretation clause of that statute, got modified by incorporation of different definitions, including the terms "co-operative bank" and "primary agricultural credit society". Those terms stood thus incorporated at sequences (cci) and (cciv) respectively in section 5 of the Banking Regulation Act. We may here and now note that both those definition clauses open using the term "means". 11. Clause (cci) of section 5 of the Banking Regulation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CARDB Act, is to be thereafter known as the "Kerala State Co-operative Agricultural and Rural Development Bank Limited". Obviously, therefore, while the affairs of that institution, namely, the Kerala State Co-operative Agricultural and Rural Development Bank Limited, fall to be regulated by the provisions of the Kerala State Co-operative (Agricultural and Rural Development Banks) Act, 1984 ; none the less, it continues to be a society registered under the provisions of the Travancore-Cochin Co-operative Societies Act, 1951. That Act was repealed as per section 110 of the KCS Act, however with a saving clause in sub-section (2) of section 110 of the KCS Act, whereby, among other things, any society existing in the State on the date of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mortgage Bank and the primary banks and also the bye-laws, unless inconsistent with the provisions of the CARDB Act. Carrying forward the structuring and operations provided for by the Kerala Co-operative Land Mortgage Banks Act, 1960, the CARDB Act provides for the Kerala State Co-operative Agricultural and Rural Development Bank Limited (appellant) as the principal co-operative society in the State for the purpose of agricultural credit facility. The provisions of the CARDB Act provide an operational mechanism through the primary banks and primary agricultural credit societies as defined in clauses (g) and (h) of section 2 of the CARDB Act. These provisions would show that the appellant falls within the term "co-operative bank" in clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unctive, and, not alternative. 17. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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