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TMI Blog2020 (7) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. 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 of the Act, the society has an area of operation, operates within the taluk and will provide long term credit for agricultural and rural development activities as well. The CIT (A) rightly granted the relief to the assessee as con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the said case was also a Cooperative Society carrying on business of Banking. The question was whether the assessee was entitled to deduction under Section 80P(2)(a)(i) of the Act, as the activity carried on by the assessee being a finance business, it cannot be termed as a Cooperative Society. 4. The Court after considering the definition of 'Member' under the Tamil Nadu Cooperative Societies Act, 1983 and also taking note of Section 80P(4) of the Act, considered the definitions of the expressions 'Members' and an 'associated members' under the Cooperative Societies Act and held that an 'associated member' is also a member in terms of Section 2(16) of the Cooperative Societies Act. Accordingly, the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of a society engaged in carrying on the business of providing credit facilities to its member. Once the description is answered, then automatically, the benefit of Section 80P of the Act would stand attracted subject to the provisions contained in Sub-Section (2) of Section 80P of the Act. 14. Further, it is to be pointed out that in terms of Sub-Section (4) of Section 80P of the Act, which was 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also observed that in the light of insertion of Sub-Section (4) to Section 80P of the Act by the Finance Act, 2006, such deduction should not be admissible to a cooperative bank and that if it is a primary agricultural credit society or a primary cooperative agriculture and rural development bank, the deduction would still be provided. 17. In the preceding paragraphs, we have pointed 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 ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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