TMI Blog2018 (10) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... rest of justice and equity, we deem it appropriate to restore the matter to the CIT(A) for de novo consideration. We also noticed that the CIT(A) has directed the A.O. to grant deduction u/s 80P(2)(c) of the I.T.Act. There is no discussion by the CIT(A) for granting benefit of deduction u/s 80P(2)(c) of the I.T.Act. For this reason also, we vacate the finding of the CIT(A) and direct him to consider the entire case afresh. The CIT(A) shall also take into consideration that a co-operative society having an area of operation in more than one taluk is not entitled to deduction u/s 80P of the I.T.Act. The assessee shall produce necessary material to prove its case of eligibility u/s 80P(2)(a)(i) and 80P(2)(c) of the I.T.Act. It is ordered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not meet the definition of a Primary Co-operative Primary Cooperative Agricultural and Rural Development Bank' as given in explanation (b) of Section 80P(4), as its area of operation is not confined to a Taluk. The learned Commissioner of Income Tax (A) ought to have considered the decisions of ITAT, Jaipur Bench 'B' Jaipur in ITA No.764/JP/2011 dated 23-03-2012 in the case of Kekri Sahakari Bhumi Vikas Bank Ltd. and ITAT, Indore in the case of M/s. Vidisha Bhopal Kshetriya Gramin Bank in ITA No.215 216/Ind/2011 dated 18-06-2012 which have considered the explanation (b) to Section 80P(4). It states that 'Primary Co-operative Agricultural and Rural Development Bank' means a society having its area of operation con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act. 6. For these and other grounds that may be urged at the time of hearing, it is requested that the order of the Commissioner of Income tax (Appeals) may be set aside and that of the Assessing Officer restored. 3. Brief facts of the case are as follows:- The assessee is a Co-operative Agricultural and Rural Development Bank, registered under the Kerala Co-operative Societies Act, 1969. For the assessment year 2012-2013, the assessment was completed u/s 143(3) of the I.T.Act vide order dated 31.3.2015. In the said order, the claim of deduction u/s 80P of the I.T.Act was disallowed for two reasons, viz., (i) assessee was primarily engaged in the business of banking and in view of insertion of section 80P(4) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insertion of section 80P(4) of the I.T.Act w.e.f. 01.04.2007 would not affect the allowability of deduction u/s 80P(2)(a)(i) of the I.T.Act in respect of assessee. It was submitted that the assessee was registered under the Kerala Co-operative Societies Act, 1969, as a Co-operative Rural Development Bank, therefore, the provisions of section 80P(4) of the I.T. Act will not have application. The learned AR relied on the judgment of the Hon ble jurisdictional High Court in the case of The Chirakkal Service Co-operative Bank Ltd. Ors. (supra). 5.2 As regards the assessee s area of operation to more than one taluk, it was submitted that the amendment was carried out in the bye-laws of the assessee and its area of operation was confined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this reason also, we vacate the finding of the CIT(A) and direct him to consider the entire case afresh. The CIT(A) shall also take into consideration the orders of the Cochin Bench of the Tribunal in the cases of (i) M/s.Kottayam Agricultural Rural Development Bank Limited v. ITO (order dated 25.05.2017) and (ii) M/s.Meenachil Agricultural Rural Development Bank Limited v. ITO (order dated 03.10.2017), wherein it was categorically held that a co-operative society having an area of operation in more than one taluk is not entitled to deduction u/s 80P of the I.T.Act. The assessee shall produce necessary material to prove its case of eligibility u/s 80P(2)(a)(i) and 80P(2)(c) of the I.T.Act. It is ordered accordingly. CO No.7/Coch/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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