2014 (6) TMI 916

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..... e agricultural rural development bank. The Legislature did not want to deny the said benefit to a primary agricultural credit society or a primary co- operative agricultural and rural development bank. They did not want to extend the said benefit to a co-operative bank which is exclusively carrying on banking business i.e., the purport of the amendment. If the assessee is not a Co-operative bank carrying on exclusively banking business and if it does not possess a license from the Reserve Bank of India to carry on business, then it is not a Co-operative bank. It is a Co-operative society which also carries on the business of lending money to its members which is covered under Section 80P(2)(a)(i) i.e., carrying on the business of banking fo .....

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..... was right in law in holding that Section 80P(4) is applicable only for the Assessment Year 2008-09 onwards inspite of the fact that the explanatory notes of the Finance Act 2006 makes it abundantly clear that this provision is applicable from assessment year 2007-08? (ii) Whether on the facts and circumstances of the case, the Tribunal was right in law in allowing appeal preferred by assessee even when assessee is not entitled for any relief as the assessee had not satisfied the conditions laid down in Section 80)(2)(a)(i) of the I.T. Act and since assessee does not fall under the definition of Primary Agricultural Credit Society or primary co-operative agricultural and rural development bank which are eligible for deduction under Se .....

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..... ts members which is covered under Section 80P(2)(a)(i) i.e., carrying on the business of banking for providing credit facilitates to its members. The object of the aforesaid amendment is not to exclude the benefit extended under Section 80P(i) to the society. Therefore, the said issue was held in favour of the assessee and against the revenue. 4. Insofar as the second question of law is concerned, in the aforesaid judgment this Court has held, when status of the assessee is a co-operative society and not a co-operative bank, the order passed by the Assessing Authority extending the benefit of the exemption from payment of tax under Section 80P(2)(a)(i) of the Ac t is correct. There is no error. When there is no error, question of ord .....

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