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TMI Blog2014 (9) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant is a multi-purpose co-operative society registered under the KCS Act as evident from the registration certificate issued under the KCS Act, it cannot but be said that it falls within the definition of the said term under section 2(f- 1) of the KCS Act and also under the definition of the term "Primary agricultural credit co-operative society". Regard being had to section 5(cciv) as provided under section 56 of the Banking Regulation Act, 1949, the appellant being a primary agricultural credit co-operative society, coupled with the fact that under its bye-laws, a co-operative society cannot become a member, complies with the requirements of the "Act" . Thus the exception carved out in sub-section (4) of section 80P of the "A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ?" 3. The appellant a multi-purpose co-operative credit society, registered under the "KCS Act" with registration certificate dated October 23, 2001, filed its return for the assessment year 2010-11, declaring a gross total income of ₹ 11,24,117 and claimed the entire amount as a deduction under section 80P(2)(a)(i) and the taxable income as nil. 4. The assessing authority (ITO, Ward-1(2), Belgaum), by assessment order dated October 31, 2012, annexure B, declined the deduction and assessed the income to ₹ 12,11,580, on the premise that the appellant is a primary co-operative bank disentitled to the benefit of deduction under section 80P(2)(a)(i), in the light of section 80P(4) of the "Act" . That order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society" or "primary co-operative agricultural and rural development bank" to the benefits of deduction under section 80P of the Act. Therefore, what is required to be noticed is whether the appellant, multi-purpose cooperative credit society, falls within the definition of either "primary agricultural credit society" or "primary co-operative agricultural and rural development bank". The Explanation to the said sub-section states that a co-operative bank and the primary agricultural credit society shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949). In the facts of this case, suffice it to notice Explanation (a). 7. Part V of the Banking Regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative societies for the time being in force ;. . . (cciii) x x x [(cciiia) x x x ;] (cciiib) x x x ;] (cciv) 'primary agricultural credit society' means a co-operative society,- (1) the primary object or principal business of which is to provide financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities (including the marketing of crops) ; and (2) the bye-laws of which do not permit admission of any other co- operative society as a member : Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties and who is normally residing within the area of operation of the society and who genuinely need the services provided by the society, and competent to enter into contract under section 11 of the Indian Contract Act, 1872, is eligible to become the member of the society." 10. In the light of the established fact that the appellant is a multi-purpose co-operative society registered under the KCS Act as evident from the registration certificate issued under the KCS Act, it cannot but be said that it falls within the definition of the said term under section 2(f- 1) of the KCS Act and also under the definition of the term "Primary agricultural credit co-operative society". Regard being had to section 5(cciv) as provided und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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