TaxTMI 
TaxTMI 
2018 (2) TMI 1913
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....eby the appeals filed by the Revenue are allowed and the cross-objections filed by the assessee has been dismissed. 2. The assessee is a primary agricultural credit society said to have been registered under the Karnataka Co-operative Societies Act, 1959. It is submitted that the membership of the appellant-society is for the agriculturists engaged in agricultural work and other nominal members as per the byelaws of the society. It is contended that the appellant-society does not have membership of other co-operative societies as members of the appellantco-operative society. It is the case of the appellant that the status of the primary agricultural credit society which is engaged in the co-operative functioning of providing credit facilit....
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....re the appellate authority-Commissioner of Income-tax (Appeals), whereby the appellate authority allowed the appeals. 4. Aggrieved by the same, the Revenue preferred appeals before the Tribunal. The Tribunal after hearing both the sides, set aside the order and remanded the matter to the appellate authority, i.e., the Commissioner of Income Tax (Appeals) and the first appellate authority after examining the various factual aspects came to a conclusion that the interest earned by the appellant, i.e., the investment in Vishwanath Sugars Limited be considered as interest earned in the course of banking activities and eligible for exemption under section 80P(2)(a)(i) of the Act. The Revenue, being aggrieved by the said order of the Commissione....
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....al and rural development bank or under the primary agricultural credit society and held that the appellant is not entitled for the benefit of section 80P(4) of the Act which is wholly unjustifiable and the same calls for interference by this court. 6. Inviting the attention of this court to section 80P(4) of the Act, it was submitted that the provisions of section 80P(4) of the Act is not applicable in relation to any co-operative bank other than the Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank. Explanation for the purpose of this section contemplates that : "(b) 'primary co-operative agricultural and rural development bank' means a society having its area of operation conf....
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.... of deduction under section 80P(4) of the Act, these vital aspects would have been brought to the notice of the Tribunal, the same having been denied the assessee is compelled to approach this court. Accordingly, the learned senior counsel seeks for a remand to the Assessing Officer to put forth their case inasmuch as the exception clause permitted under section 80P(4) and the Explanation thereof. 11. Learned counsel Shri Y. V. Raviraj appearing for the Revenue placing reliance on Circular No. 6 of 2010 dated September 20, 2010 ([2010] 328 ITR (St.) 63 ) issued by the Central Board of Direct Taxes submits that the assessee is not entitled for any benefit even under section 80P(4) of the Act in terms of the said circular. Reliance is also p....