2015 (9) TMI 1422

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....n 80P(4). For this, we reproduce here-in-below appeal its main objects (refer para 3, page 2 of the appellate order): `2. The objects for which the society is formed are as under: a) To provide finance to its members against immovable property, agricultural land, residential house and plot, liquid assets (NSC, KVP and FDR of Bhumi Vikas Bank) and taking guarantee of two persons, against salary income for the objectives mentioned in section 67 of the Rajasthan Cooperative Societies Act, 2001, to finance without any securities to the members under various plans of State Govt. / Central Govt. b) To receive deposit from members and others after getting approval from NABARD /RBI. c) To fulfil the objects, society shall become member of the Rajasthan State Cooperative Land Development Bank and shall follow the policies laid by Rajasthan State Cooperative Land Development Bank.' In the light of the foregoing, we find nothing in its object clause to suggest that its primary object is providing financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities (including marketing of crops), as stipu....

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....ion, is only relevant, so that that the assessee would need to satisfy the taxing authority with regard thereto. Needless to add, this requirement has to be satisfied by it independently for each year, as there could well be a change in the profile of its lending activities with time. Further, we observe that the assessee's claim of being a primary cooperative agricultural and rural development bank, which though would require independent examination and finding/s, is strongly indicative of the nature of its lending activities, which has a direct bearing on the question of it being a PACS (or not). There being no finding in the matter by the authorities below, we restore the matter for the purpose of necessary verification and issue of definite findings of fact/s, back to the file of the first appellate authority, who shall adjudicate the same after hearing the parties, including recourse to rule 46A, where the assessee leads any new evidence in this regard. Also, where any cooperative bank is a member of the assessee-society, it would have to be additionally shown that the same is so by subscribing to its share capital out of funds provided for the purpose by the State Government,....

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....cciv) "primary agricultural credit society" means a co-operative society,-- (1) the primary object or principal business of which is to provide financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities (including the marketing of crops); and (2) the bye-laws of which do not permit admission of any other co-operative society as a member: Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose;'' From the chart of loans advanced by the assessee during the year under consideration, it is apparent that assessee's principal business was not that of providing financial accommodation to its members for agricultural purposes or purposes connected with agricultural activities as per the definition of primary agricultural activity given in Part-V of Banking Regulation Act, 1949. As such, the assessee cannot be considered as primary agricultural credit society. Further, assessee is not a 'primary cooperative agricultural....

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....t was further contended that the order passed by the Tribunal is correct and the assessee is not entitled to claim deduction u/s 80P(2)(a)(i) in view of Section 80P(4)of the Act. 2.6 We have heard the rival contentions and perused the materials available on record. Before we proceed to examine the contentions of the parties, we would like to state the provisions of law and the same are reproduced for the purpose of convenience. Section 80P - Deduction in respect of income of co-operative societies (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely: (a) in the case of a co-operative society engaged in - (i) carrying on the business of banking or providing credit facilities to its members, or (ii) a cottage industry, or 1[(iii) the marketing of agricultural produce grown by its members, or] (iv) the purchase of the agricul....

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.... income; (f) in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities or any income from house property chargeable under section 22. Explanation : For the purposes of this section, an "urban consumers' cooperative society" means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee notified area committee, town area or cantonment. (3) In a case where the assessee ........................................................................ 4[(4) The provisions of this section shall not apply in relation to any cooperative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. Explanation : For the purposes of this sub-section,-- (a) "co-operative bank" and "primary agricultural credit societ....

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....rative 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 cooperative 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 fulfilling the description contained therein but also credit societies, which are not cooperative banks. In the present case, respondent assessee is admittedly not a credit co-operative bank but a credit co-operative society. Exclusion clause of subsection (4) of section 80P, therefore, would not apply. In the result, Tax Appeals are dismissed." 2.10 In the light of above discussion now we are required to examine whether the assessee is engaged in agricultural and rural development activities and is qualified under explanation to subsection 4 of 80P. In the present case the activities of the assessee were reproduced by the lower authorities as under:-   Thus it is clear that the assessee is primarily involved giving loans to its members for the purposes of purchasing minor irrigatio....

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....¤° every artificial juridical person, not falling within any of the preceding sub-clauses # सहकारी भूमि विकास बैंक समिमलित हैं और उस पर Fringe benefits Tax लागू होता हैं। आयकर अधिनियम 1961 की धारा 115 ठ: 1द्ध - 1156 के तहत निर्धारिती द्वारा लाभ-हानि खाते में नामें लिख रखें खर्चे जिनका उल्लेख ऊपर किया गया है पर फिज बेनिफिट टैक्स बà¤....

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....‹à¤¸ साक्ष्य प्रस्तुत नहीं किये हैं। निर्धारिती द्वारा प्रस्तुत ऑडिट रिर्पोट 3 सीडी का अवलोकन करने पर पाया कि ऑडिट रिर्पोट में ददमगनतम प में फिज अनुलाभ के मूल्य की गणना निम्न प्रकार से की जाती है। Document 2 खर्चे की प्रकृति खर्चे की राशà....

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....¤†à¤¯à¤•à¤° - अधिनियम की धारा 80 पी के तहत गलत तथ्य प्रस्तुत करते हुये कटौती का दावा किया है अतः गलत तथ्य करने के कारण आयकर - अधिनियम 1961 की धारा 271 ( 1 ) (सी) के तहत शास्ति नोटिस जारी किया जावें । Document 3 क्र.सं. सेक्टर का लक्ष्य वितीय नाम संशोधित ऋण वितरण ग....