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TMI Blog2015 (11) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... ary level as well as at the level of village/town for farmers as well as customers. Therefore, it is entitled to allow deduction under section 80P(2)(d) of the Act. On the basis of evidence enclosed by the assessee, it is fact that the assessee has been advancing loan to the farmers and villagers as a primary loan. It is not clear from the record that from where the assessee was getting dividends, therefore, matter is set aside and remanded to the Assessing Officer for de novo enquiry and decide the case by providing the reasonable opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes only. - I. T. A. No. 486 /JP/ 2012(assessment year 2008-09). - - - Dated:- 5-6-2015 - R. P. TOLANI (Judi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation (b) stated above. (c) That this is a co-operative bank and engaged in primary co- operative banking for rural and agro advances, you have mentioned the definition as per section 56(cci) of the Banking Regulation Act, 1949 which is defining the different co-operative bank. It has no relation and impact on the deduction granted under section 80P(2)(d) of the Income- tax Act. 3. He requested to allow the deduction under section 80P(2)(d) of the Act and the learned Assessing Officer after considering the assessee's reply held that the assessee is engaged in the banking business, therefore, provisions of section 80P(2)(d) of the Act is not applicable on the bank. The assessee submitted that the definition of section 50C(iic) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object is to provide for long-term credit for agricul tural and rural development activities. Taluk word is not defined. The assessee's area of operation is 'bundi' district and it can be presumed that the area of operation was confined to a 'Taluk'. However, the principal objects of the assessee, as per objects filed by assessee are as under : From the above, it can be seen that the principal object of the assessee is not to provide long-term credit for agricultural and rural development activities. Secondly, the assessee is not a primary bank but a nodal bank which works as a balancing centre for other co-operative banks work ing in the area. The assessee distributed loans of ₹ 78.38 (76.85 per cent.) c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isdiction to provide finance/loan to small professionals and agriculturists living in the village and towns. It gives direct loan also which comes in primary loan. Whatever loan given through the co-operative society, which is debited in the name of society but given directly to the customers and also regulated through the society for interest and recovery purposes. Therefore, the bank was providing loans at primary level as well as at the level of village/town for farmers as well as customers. Therefore, it is entitled to allow deduction under section 80P(2)(d) of the Act. On the basis of evidence enclosed by the assessee, it is fact that the assessee has been advancing loan to the farmers and villagers as a primary loan. It is not clear f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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