Tax benefits under Section 80P(4) are strictly confined to co-operative banks whose operations are limited to a single taluk, as per the legislative definition.

JUDGMENT

S.V.Bhatti, J.

We have heard learned Senior Advocates Sri Joseph Markose and Sri PKR Menon.

2. The Meenachil Co-operative Agricultural & Rural Development Bank Ltd., Kottayam/Assessee is the appellant. The Income Tax Officer, Ward-4, Kottayam is the respondent.

3. The appellant raised an identical question of law for decision;

the circumstances surrounding the controversy are similar in all the assessment years. Therefore, by this common judgment, the appeals stand disposed of.

4. The details of the year of assessment and orders of the authorities are stated in the following table:

ITA No.25 of 2019

5. The assessee is the Primary Co-operative Agricultural and Rural Development Bank, claimed and availed the benefits of deduction under Section 80P of the Income Tax Act (for short, 'the Act'). The revenue for the assessment year 2010-2011 denied the deduction claimed under Section 80P of the Act. The assessee has an area of operation in more than one Taluk. Section 80P (4) was amended and read as follows:

[(4). The provisions of this Section shall not apply in relation to any co-operative 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 society" shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949);

(b) "primary co-operative agricultural and rural development bank" means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.]

6. The Assessing Officer, through an order dated 29.09.2015 (Annexure-A), has recorded the following finding:

14. In response, CA, Abraham K Thomas, authorised representative of the assesssee, has contended as follows:

``The amendment made to section 80P by insertion of sub-section (4) w.e.f. 01-04-2007 does not take away the applicability of the section to agricultural and rural development bank having its area of operation in more than one taluks. While the amendment also defines `primary co-operative agricultural and rural development bank' as a Society having its area of operation confined to 'a taluk`, the usage of the article `a' before the word `taluk' is not to be understood to indicate a single taluk for the following reasons:

(1) Section 13(2) of the General Clauses Act provides as under:

13(2): Gender and number – In all Central Acts and Regulations, unless there is anything repugnant in the subject or context.-

[1] words importing the masculine gender shall be taken to include females; and [2] words in singular shall include the plural, and vice-versa'.

In the instant case, there is nothing in the Section to suggest that the definition restricts the applicability of section 80P only to agricultural and rural development banks having its area of operation in a single taluk. If that was the intention, the legislature could have very well have used the word 'single or one taluk".

(2) The expression, 'a taluk' should be understood in a sense that the opera