TMI Blog2015 (4) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... redit Society [2015 (7) TMI 557 - ITAT CHENNAI] the assessee is not a co-operative bank. The activities in the nature of accepting deposits, advancing loans etc., carried on by the assessee are confined to its members only and that too in a particular geographical area. The activities of the assessee are not regulated by the RBI or the provisions of the Banking Regulation Act. Thus, in view of the above stated facts and various decisions considered above, we do not find any infirmity in the order of the CIT(Appeals). - Decided in favour of assessee - I.T.A.Nos.27 to 30/Mds/2015 and C.O.Nos.21 to 24/Mds/2015 - - - Dated:- 17-4-2015 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER. Appellant b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of loan issued was for commercial activities and not for agricultural activities. On appeal, Commissioner of Income Tax (Appeals) allowed the appeals of the assessee following the decision of the co-ordinate Bench of this Tribunal in the case of ITO Vs. ITO Vs. M/s.Veerakeralam Primary Agricultural Co-operative Credit Society in ITA No.197/Mds/2013 dated 11.02.2014 and the decision in the case of Karkudalpatty Primary Agricultural Co-operative Credit Society Ltd. Vs. ITO in ITA No. 292/Mds/2014 dated 17.03.2014. On going through the orders of co-ordinate Bench of this Tribunal, we find that the issue in appeals is squarely covered by the decision of this Tribunal in the case of The Salem Agricultural Producers Co-operative Marketing Soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers includes associate members , as well. The Tribunal found that such nominal members also enjoy statutory recognition as per the State Co-operative Societies Act. The Tribunal further observed that the objections of the Revenue that members define d in sub-clause (i) of section 80P (2) should only include voting members, would amount to a classification within classification which is beyond the purview of taxing statute; unless provided specifically by the legislature. 4. Therefore, we find that the issue raised in these appeals stands adjudicated by the Tribunal in favour of the assessee. Accordingly, we set aside the orders of the lower authorities on this point and direct the assessing authority to grant the benefit to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purposes of this subsection,- (a) co-operative bank and primary agricultural credit society shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949); (b) primary co-operative agricultural and rural development bank means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.] From the provisions of sub-section 4 of section 80P and the Explanation to section 80P, it is evident that the benefit of section 80P is not available to co-operative banks whereas the Primary Agricultural Credit Societies are entitled for the same. For the purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 section 80P will not apply to assessee which is not a cooperative bank. The relevant extract of the order of the Hon ble High Court is reproduced herein below: 5. Assessing Officer held that by virtue of section 80P(4), the respondent assessee would not be entitled to benefits of deduction under section 80P. CIT(Appeals) as well as the Tribunal reversed the decision of the Assessing Officer on the premise that the respondent assessee not being a bank, exclusion provided in subsection( 4) of section 80P would not apply. This, irrespective of the fact that the respondent would not fall within the expression primary agricultural credit society. 6. Had this been the plain statutory provisions under consideration in isolation, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooperative Bank and a primary Co-operative bank. 4. Thus, if the Delhi Co op Urban T C Society Ltd does not fall within the meaning of Co-operative Bank as defined in part V of the Banking Regulation Act, 1949, sub section(4) of section 80P will not apply in this case. 5. The issues with the approval of Chairman, Central Board of Direct Taxes. 7. From the above clarification, it can be gathered that sub-section(4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift Credit Society Ltd. was under consideration. Circular clarified that the said entity not being a cooperative bank, section 80P(4) of the Act would not apply to it. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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