Section 80P eligibility depends on actual co-operative society ities and statutory status, not registration label alone.

A registration certificate under the Kerala Co-operative Societies Act is conclusive only of due registration and does not by itself establish that a society is a Primary Agricultural Credit Society for deduction under Section 80P(4) of the Income-tax Act. Eligibility depends on the substantive statutory definition, including the society's principal objects and actual activities, and not merely on the label in the certificate. After insertion of Section 80P(4), income-tax authorities may examine the society's status and activities year-wise to determine whether it satisfies the conditions for relief in the relevant assessment year.

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Issues: (i) Whether the registration certificate issued under the Kerala Co-operative Societies Act conclusively established that the assessee was a Primary Agricultural Credit Society for the purpose of deduction under Section 80P(4) of the Income-tax Act, 1961; (ii) Whether, after insertion of Section 80P(4), the Assessing Officer could enquire into the actual activities and status of the assessee society to decide eligibility for deduction under Section 80P.

Issue (i): Whether the registration certificate issued under the Kerala Co-operative Societies Act conclusively established that the assessee was a Primary Agricultural Credit Society for the purpose of deduction under Section 80P(4) of the Income-tax Act, 1961.

Analysis: The registration certificate under Section 8(1) of the Kerala Co-operative Societies Act is conclusive only of due registration under that Act. It does not conclusively establish that the society continues to satisfy the substantive definition of a Primary Agricultural Credit Society for income-tax purposes. The classification under the State Act depends on the principal object in the bye-laws, and the statutory definition under the Banking Regulation Act is relevant for Section 80P(4).

Conclusion: The certificate of registration is not conclusive for claiming deduction under Section 80P(4); the assessee must independently satisfy the substantive statutory definition.

Issue (ii): Whether, after insertion of Section 80P(4), the Assessing Officer could enquire into the actual activities and status of the assessee society to decide eligibility for deduction under Section 80P.

Analysis: Section 80P(4) excludes co-operative banks from the deduction, except Primary Agricultural Credit Societies and Primary Co-operative Agricultural and Rural Development Banks. The Court held that entitlement must be determined year-wise on the basis of the society's actual activities and the statutory definition, and not merely by the label assigned in the registration certificate. The authorities under the Income-tax Act are therefore empowered to examine whether the assessee in fact satisfies the conditions for the exemption in the relevant assessment year.

Conclusion: The Assessing Officer is entitled to conduct a factual enquiry into the society's activities and status for each assessment year.

Final Conclusion: The reference was answered by holding that income-tax authorities are not bound by the registration label alone and must examine the factual and statutory eligibility of the society for Section 80P relief, with the appeals to be listed before the appropriate Bench.

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