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2024 (5) TMI 97 - ITAT COCHINDeduction u/s 80P(1) - assessee is registered as a Primary Agricultural Credit Society (PACS) - HELD THAT:- Banking being an eligible activity u/s. 80P(2)(a)(i), the assessee being in the said business would again matter little; rather, entitle it for the deduction on the entirety of it’s profit, i.e., including that referable to business with non-members. Further still, the assessee/s, satisfying the primary condition of s. 2(19) of the Act defining a society, is, thus, a cooperative society, a pre-requisite for deduction u/s. 80P(1). The resolution of the dispute as to whether the assessee is therefore eligible for deduction u/s. 80P(1) r/w s. 80P(2)(a)(i) and, where so, its extent, thus rests solely on the assessee being, or not being, a co-operative bank, a term again defined under BRA, which stands adopted for the purpose of s. 80P, determining the issue. Copy of the bye-laws, only a certified translated copy of which, in full, can be taken cognizance of and regarded as a part of the record, is not on record. As also noted by the Tribunal in it’s orders afore-referred, what value the restriction on the area for it’s members, if the assessee-society is otherwise eligible to accept deposits from non-members as well! Under the circumstances, we, for the reasons afore-noted, as also the cases referred to, set aside the orders by the Revenue authorities, and restore the matter back to the file of the Assessing Officer (AO) to determine the assessee’s eligibility for deduction u/s. 80P(1) r/w s. 80P(2)(a)(i) on the basis of it being or, as the case may be, not being, a co-operative bank, i.e., on the basis of it’s bye-laws read with the Kerala Act and the BRA, as well as the quantum of the deduction there-under, which we clarify would be in full where the assessee is a cooperative bank, with it’s entire income arising from the business of banking. Assessee’s appeal is allowed for statistical purposes.
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