Assessee was a state level agricultural and rural development bank governed as a co-operative society under Kerala Co-operative Societies Act, 1969 and is  engaged in providing credit facility to its members. Assessing Officer disallowed deduction under section 80P(2)(a)(i) on ground that the assessee was a co-operative bank and, thus, was hit by section 80P(4) of the Act.  and would not be eligible for deduction under section 80P(2).  The disallowance is affirmed by the Tribunal. Order of Tribunal is affirmed by the High Court. On appeal the Court held that  the assessee-society is  an apex co-operative society within meaning of State Act, 1984 whose primary object was to provide financial accommodation to its members who were all other co-operative societies and not members of public, it was not a co-operative bank within meaning of section 5(b) read with section 56 of Banking Regulation Act, 1949. Accordingly the  deduction under section 80P could not be denied by invoking section 80P(4) of the Act.(AY. 2007-08)