TMI Blog2018 (1) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... hat, CIT(DR). For The Respondent : Shri B.S.Balachandran, Advocate ORDER Per INTURI RAMA RAO, AM : This is an appeal filed by the revenue directed against the order of the Commissioner of Income - tax (Appeals)-5 [CIT(A)], Bengaluru, dated 31/12/2015 for the assessment year 2012-13. 2. The revenue raised the following grounds of appeal: 1. The order of the Commissioner of Income Tax (Appeals)-5, Bangalore, is opposed to the law and not the facts and circumstances of the case. 2. On the facts and circumstances of the case, whether Ld. CIT(A) is correct in allowing the claim made by the assessee u/s 80P(2)(a)(i). 3. For these and other grounds that may be urged upon, the order of the CIT(A) may be reversed and that assessment be restored. 4. The Appellant craves leave to add, alter, amend or delete any other grounds or before hearing of the appeal. 3. Briefly facts of the case are that the respondent-assessee is a cooperative society engaged in the business of advancing various types of loans to agriculturists and non-farm sector, rural housing, small rural transport operator scheme and deposit mobilization, pledge jewel loan and salary loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al development bank. Undisputedly, it is a co-operative bank. But it is not a primary agricultural credit society. It requires to be examined whether it is a primary co-operative agricultural and rural development bank or not. The term primary co-operative agricultural and rural bank is defined by way of Explanation to sub-section (4) of section 80P as follows: Explanation.-For the purposes of this sub-section,- ( 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.] The AO has extracted clause 19 of Byelaws of the respondent-assessee, according to which, the respondent-assessee may entertain deposits. The relevant extract is reproduced below: As per clause 19 of the Bye-laws, the bank entertain deposits from a) from agriculturists with the object promoting rural debentures. b) towards ordinary debentures from any persons and institutions. c) deposits from PCARD banks. The terms and conditions of these deposits. d) deposits from PCARD banks. The terms a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 BR Act, among other things; Section 5 of the BR 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 BR 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 BR Act, incorporated as aforenoted, provides that: - Co-operative bank means a state co-operative bank, a central co- operative bank and a primary co-operative bank.' 12. As per Clause (ccvii) of Section 5 read with Section 56 of the BR Act, central co-operative bank and state co-operative bank shall have the meaning respectively assigned to them in the NABARD Act. Those terms are defined in Clauses (d) and (u) of Section 2 of the NABARD Act to, respectively, mean th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being in force in the State of Kerala and is a co-operative society as defined in Section 2(f) of the NABARD Act. 14. As per Section 47 of the CARDB Act, there is an entire transition of the assets and liabilities of the Kerala Co-operative Central Land Mortgage Bank and primary land mortgage banks whereby they stand transferred and vested in the Agricultural and Rural Development Bank and its primary banks. The Central Land Mortgage Bank and the primary land mortgage banks referred to in Section 47 of that Act are respectively the Central Mortgage Bank and the primary mortgage banks which stood governed by the provisions of the Kerala Cooperative Land Mortgage Banks Act, 1960 which enactment stood repealed as per Section 52(1) of CARDB Act with saving clauses relating to all matters including the relationship between the Central Land 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 Cooperative Land Mortgage Banks Act, 1960, the CARDB Act provides for the Kerala State Co-operative Agricultural and Rural Development Bank Limited (ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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