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TMI Blog2018 (10) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... aluk. The first letter of the English alphabet which precedes the word ‘Taluk’ is used “before nouns and noun phrases that denote a single, but unspecified, person or thing…….”. [Webster’s Dictionary] ’A’ is used to mean or denote ‘one’. A Taluk is a revenue division. Few villages constitute a taluk and few taluks constitute a District. The mischief of sub-section (4) will not fall on a primary cooperative agricultural and rural development bank provided it’s operation is limited to a taluk and the principal object of which is to provide for long term credit for agricultural and rural development activities. Since the assessee’s area of operation was not confined to a Taluk for the relevant assessment year, we hold that it was not entitled to the benefit of deduction u/s. 80P(2) As relying on assessee's own case for the immediately assessment year 2010-2011 we hold that the Income-tax authorities are justified in denying the assessee the benefit of deduction u/s 80P(2) of the I.T.Act, for the impugned year, as well. - Decided against assessee. - ITA No.295/Coch/2018 - - - Dated:- 17-10-2018 - Shri Chandra Poojari, AM And Shri George George K, JM For The Appellant : Sr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TALUK. In Section 80(P) (4)(b) which does not indicate a singular number. ( b) It is evident from the following case laws that: :- i) C.I.T Vs. Gita Duggal (Delhi High Court), ii) Ananda Basappa 309 ITR 329 (Kar), iii) K.G. Rukminiamma 331 ITR 211 (Kar), Though the decision is with reference to section- 54 the issue considered is squarely applicable in the Assessee's case. 9. The CIT (Appeals) has not properly understood the argument notes, submitted at the time of hearing and also the explanations given there in, regarding the case laws, relied on by the Assessing Officer, as misplaced relating to the amended clause 80P (4) and the Impact of article a used therein . 4. Brief facts of the case are as follows:- The assessee is a Co-operative Agricultural and Rural Development Bank, registered under the Kerala Co-operative Societies Act, 1969. For the assessment year 2011-2012, the return of income was filed on 28.09.2011 declaring total income of ₹ 1,70,260 after claiming deduction u/s 80P of the I.T.Act, amounting to ₹ 35,39,804. The assessment was completed u/s 143(3) r.w.s. 147 of the I.T.Act vide order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank which had an entire District as its area of operation and the restriction of the definition is to be thus understood as applicable to Banks which has its operation at the District Level or State Level. The learned Counsel further submitted that the order of the ITAT, Jaipur Bench in ITA No.764/JP/2011 dated 23.3.2012 relied on by the Assessing Officer and Commissioner of Income-tax (Appeals) is reversed and decided in favour of the assessee by the Jaipur Bench in the second round of litigation of the same case vide Order No.ITA/938/JP/2013 dated 24.9.2015. The learned Counsel further submitted that, exclusion in Sec.80P(4) applies only to credit Co-operative Banks but not to credit co-operative Societies, and from the CBDT Circular No.133 of 2007 dated 9.5.2007 it can be gathered that sub-section (4) of Section 80P will not apply to an assessee which is not a Co-operative Bank; and (c) the assessee is admittedly not a credit Cooperative Bank but a credit Co-operative Society. Exclusion clause of sub-section (4) of Section 80P, therefore would not apply. However the issue has been further clearly settled in ITA No.212 of 2013 by the Hon'ble High Court of Kerala in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e versa. The Ld. Sr. Counsel relied on certain judicial pronouncements interpreting Article A in the context of deduction u/s. 54 and 54F of the I.T. Act. 6.3 The Finance Act, 2006 has defined the expression Primary Cooperative Agricultural and Rural Development Bank by inserting Explanation to section 80P(4) which reads as under: ( b) primary co-operative agricultural and rural development bank means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities. 6.4 Explanation (b) to section 80P(4) is a defining provision employing the word means . The Hon ble Apex Court in the case of West Bengal State Warehousing Corporation vs. Indrapuri Studio Pvt. Ltd.(AIR 2011 SC 47) held that when the word means is used in a definition, it signifies strict interpretation. It is trite law that an exemption provision is to be strictly construed. Moreover, the Cardinal rule of construction is that a provision must be given its ordinary meaning. Natural and ordinary meaning of words should not ordinarily be departed from. In the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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