TMI Blog2023 (1) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... considered by this Tribunal in the case of ITO vs. The Tiruchengode Agricultural Producers Cooperative Marketing Society Ltd. 2022 (7) TMI 679 - ITAT CHENNAI wherein we have considered the decision of Hon ble Madras High Court decision in the case of S-1308, Ammapet Primary Agricultural Co-operative Bank Ltd. 2019 (1) TMI 116 - MADRAS HIGH COURT we are of the view that the provision of Section 80P(4) of the Act is to be read as a proviso, which proviso now specifically excludes co-operative banks which are co-operative societies engaged in the banking business, i.e. engaged in lending money to members of the public, which have a license in this behalf from the Reserve Bank of India. Clearly, therefore, the Assessee s case is out of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s.80P(2)(a)(1) of the Act by holding that the associate members are not entitled to claim of deduction. For this, assessee has raised the following effective ground No.2:- On the facts and circumstances of the case the appellant being Primary Agricultural Society is entitled to exemption u/s 80P(2)(a)(1) of the Income Tax Act which position has been settled by the decision of the Honourable Madras High Court in the case of PCIT, Salem vs. M/s. S-1308 Ammapet PACCS Limited in tax appeal Nos.882 and 891 of 2018 and in the context of Judicial discipline the first appellate authority should have followed the above decision of Jurisdictional High Court. The SLP filed by the department against the above decision has also been dismissed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by the decision of Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd., supra wherein this Tribunal is consistently following the issue of regular members as well as associated members because the Tamil Nadu Co-operative Societies Act permits so. This issue has been c onsidered by this Tribunal in the case of ITO vs. The Tiruchengode Agricultural Producers Cooperative Marketing Society Ltd., in ITA Nos.2954 to 2956/Chny/2027, order dated 13.07.2022 wherein we have considered the decision of Hon ble Madras High Court decision in the case of S-1308, Ammapet Primary Agricultural Co-operative Bank Ltd., in T.C.A Nos.882 and 891 of 2018 and held as under:- 5.1 Further, this issue is now covered by the Co-ordina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India. In the present case also, there is no banking activity and it is not registered as a Bank and it does not hold any license issued by the Reserve Bank of India. The Assessee being a Primary Agriculture Credit Society is a Co-operative Society. The primary object of which is to provide financial accommodation to its members, i.e. members as well as Associate members for agriculture purposes or for purpose connected with the agricultural activities. Further, we are of the view that the provision of Section 80P(4) of the Act is to be read as a proviso, which proviso now specifically excludes co-operative banks which are co-operative societies engaged in the banking business, i.e. engaged in lending money to members of the public, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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