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TMI Blog2019 (9) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;associate member' under the TNCS Act held that an 'associate member' is also a 'member' in terms of Section 2(16) of the TNCS Act. Furthermore, the Assessing Officer himself found that the associate members are also admitted as members of the society. AO fell into an error in not granting any relief to the assessee society, which was rightly granted by the CIT (A) as confirmed by the Tribunal AO has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub-Section (4) of Section 80P the society has an area of operation, operates within the taluk and will provide long term credit for agricultural and rural development activities as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for Mr.S.Sridhar, learned counsel for the respondent/assessee. 4.The substantial question of law framed for consideration was considered by a Division Bench of this Court in the case of The Principal Commissioner of Income Tax, Salem vs. M/s.S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd., [T.C.A.Nos.882 to 891 of 2018, dated 06.12.2018] to which, one of us (TSSJ) was a party. 5.The appeals filed by the Revenue were dismissed and the substantial questions of law were answered against the Revenue. The operative portion of the judgment read as follows:- 11. We have elaborately heard the learned Senior Standing Counsel for the Revenue. 12. Admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inserted vide the Finance Act, 2006 with effect from 01.4.2007 i.e from the assessment year 2007-08, the 'primary cooperative agricultural and rural development bank' means 'a society having its area of operation confined to a taluk, the principal object of which is to provide for long term credit for agricultural and rural development activities'. What was excluded was the 'cooperative banks' and admittedly, the assessee society is a primary agricultural cooperative credit society and therefore, would be entitled to the benefit of Section 80P of the Act. 15. Further, for the assessment year 2014-15, the decision in the case of Citizen Cooperative Society Limited was relied upon by the Revenue befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inted out the definitions of the expressions 'members' and 'associate member' under the TNCS Act and held that an 'associate member' is also a 'member' in terms of Section 2(16) of the TNCS Act. Furthermore, the Assessing Officer himself found that the associate members are also admitted as members of the society. In such circumstances, the Assessing Officer fell into an error in not granting any relief to the assessee society, which was rightly granted by the CIT (A) as confirmed by the Tribunal. In addition to that, the Assessing Officer has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub-Section (4) of Section 80P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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