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TMI Blog2016 (5) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... ank as its member. "Primary bank" as defined in section 2(h) of the CARDB Act means, among other things, a co-operative society. Therefore, the appellant does not satisfy the condition prescribed in sub-clause (2) of clause (cciv) of section 5 of the Banking Regulation Act and hence, it is not a co- operative bank which is a primary agricultural credit society. In view of the aforesaid conclusion, we answer the question formulated above holding that the assessee does not fall within sub-section (4) of section 80P of the Income-tax Act for the assessment year in question. Hence, the impugned decision of the Tribunal does not warrant interference - Decided against assessee - I. T. A. No. 103 of 2011 - - - Dated:- 26-11-2015 - Thottathil B. Radhakrishnan And Babu Mathew P. Joseph, JJ. For the Petitioner : George Poonthottam, Anil D. Nair For the Respondent : P. K. R. Menon, Jose Joseph JUDGMENT Thottathil B. Radhakrishnan, J. 1. Having heard the learned counsel appearing for the appellant and the learned senior advocate for the Revenue, we encapsulate the question for decision in this appeal under section 260A of the Income-tax Act, 1961, IT Act , for br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation Act, 1949, BR Act , for short ; as well as the National Bank for Agricultural and Rural Development Act, 1981, NABARD Act , for short ; and the provisions of the Kerala Co-operative Societies Act, 1969, hereinafter referred to as KCS Act . Certain provisions of the Reserve Bank of India Act, 1934, RBI Act , for short, were also referred to. 7. Sub-section (1) of section 80P of the Income-tax Act authorises deductions in respect of co-operative societies ; in terms of sub-section (2) of section 80P. That is a provision made in the case of an assessee being a co- operative society. Sub-section (4) of section 80P provides that the provisions of section 80P shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank . Therefore, the exclusion provided through section 80P(4) applies only when the assessee is a co- operative bank, which is either a primary agricultural credit society or a primary co-operative agricultural and rural development bank. 8. For the purpose of section 80P(4), the term primary co-operative agricultural and rural development bank is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... element required to be satisfied to fall under either of the definitions in clause (d) or clause (u) of section 2 of the NABARD Act is that it should be a co-operative society ; which term is defined in section 2(f) of the NABARD Act to mean a society registered, or deemed to be registered, under the Co-operative Societies Act, 1912 (Central Act), or any other law relating to co-operative societies for the time being in force in any State. The appellant is not a society registered either under the Central Act or under the provisions of the KCS Act. Section 2(a) of the CARDB Act defines the Agricultural and Rural Development Bank as the one registered under section 10 of the Travancore-Cochin Co-operative Societies Act, 1951 and it is that entity which, in turn ; under section 2(a) of the CARDB Act, is to be thereafter known as the Kerala State Co-operative Agricultural and Rural Development Bank Limited . Obviously, therefore, while the affairs of that institution, namely, the Kerala State Co-operative Agricultural and Rural Development Bank Limited, fall to be regulated by the provisions of the Kerala State Co-operative (Agricultural and Rural Development Banks) Act, 1984 ; n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... primary agricultural credit societies as defined in clauses (g) and (h) of section 2 of the CARDB Act. These provisions would show that the appellant falls within the term co-operative bank in clause (cci) of section 5 of the Banking Regulation Act and thereby is a co-operative bank for the purpose of section 80P of the Income-tax Act. 15. Having held as aforesaid, the question for further consideration is as to whether the appellant is also a primary agricultural credit society. We proceed to decide that issue. 16. In terms of clause (a) of the Explanation to section 80P(4), primary agricultural credit society takes the meaning assigned to it in Part V of the Banking Regulation Act. Clause (cciv) of section 5 of the Banking Regulation Act defines the term primary agricultural credit society . It reads as follows : (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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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