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TMI Blog2018 (10) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... t. - Decided against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessment completed, the assessee preferred an appeal to the first appellate authority. The CIT(A), following the order of the Cochin Bench of the Tribunal, confirmed the assessment order. 6. The assessee being aggrieved by the orders of the Income-tax authorities, has filed the present appeal before the Tribunal. The learned Counsel for the assessee relied on the grounds of appeal. The learned AR also filed a detailed submission, which reads as follows:- 1. The Appellant is a duly registered Co-operative Society u/s 7(1) of the Kerala Co-operative Societies Act 1969, hence a Co-operative Society as defined u/s 2(19) of the Income Tax Act 1961. 2. The Appellant Society is a primary Co-operative, Agricultural & Rural Development Bank as defined u/s 80(P)(4) of the Income Tax Act, providing credit facilities to its members for Agricultural and allied Rural Development activities and eligible for deduction provided in Section 80P of the Act. 3. The principal object of Appellant Society is to provide for long term credits for Agricultural and Rural Development activities to its members. 4. The area of operation of the Appellant is confined to the rural taluks of Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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". (Para 2.7, Page 14) Thus it is clear if the society's principal object is to provide long term credit for agricultural and rural development activities is entitled to deduction under this provision of the act (Para 2.8, page 14). Moreover the Hon'ble Gujarat High Court in Tax Appeal No. 1149 of 2013 titled as CIT-II Vs. Surat Vankar Sahkari Sangh Ltd. vide order dated 17th January, 2014 held vide paragraph 7 as under: (Para 2.9, Page 14,15) From the above clarification, it can be gathered that sub-section (4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift & Credit Society Ltd. was under consideration. Circular clarified that the said entity not being a Co-operative bank, section 80P (4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenues contention that section 80P (4) would exclude not only the Co-operative banks other than those fulf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has two submissions by way of requests- i. Without prejudice to the above submissions it is prayed that exemption Us.80P may be granted for the income relating to one taluk atleast. OR ii. Since the same issue is pending before the Hon'ble High court of Kerala for the A.Y.2010-11. This appeal may be kept in abeyance awaiting orders of the Hon'ble High Court in the matter, since the entire tax demanded is paid." 7. The Departmental Representative, on the other hand, relied on orders of the Income-tax authorities. 8. We have heard the rival submissions and perused the material on record. We find that an identical issue has been considered by the Tribunal in case of M/s.Kottayam Cooperative Agricultural & Rural Development Bank Limited v. ITO (ITA No. 295/Coch/2018 order dated 17.10.2018), wherein the Tribunal held that the assessee was not entitled to the benefit of deduction u/s 80P(2) of the I.T.Act. The relevant finding of the Tribunal reads as follows:- "8. We have heard the rival submissions and perused the material on record. We find that an identical issue has been considered by the Tribunal in assessee's own case for the immediately assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 case of Jugal Kishore Saraf vs. Raw Cotton Co.Jugal Ltd. Kishoirin AIR 1955 SC 376 at page 381 Justice S.R. Das held thus: "The cardinal rule of construction of statutes is to read the Statutes literally, that is, by giving to the words their ordinary, natural and grammatical meaning. If, however, such a reading leads to absurdity and the words are susceptible of another meaning, the Court may adopt the same. But if no such alternative construction is possible, the court must adopt the ordinary rule of literal interpretation. In the present case, the literal construction leads to no apparent absurdity and therefore, there can be no compelling reason for departing from that golden rule of construction." 6.5 Keeping in mind the above principle of construction, the words "having its area of operation confined to a taluk" obtained in the Explanation (b) to sub-section (4) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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