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2019 (2) TMI 624 - AT - Income TaxEntitlement to deduction u/s. 80P(2)(a)(i) denied - as per AO assessee was primarily engaged in the business of banking and therefore, in view of the provisions of section 80P(4) which was inserted with effect from 01.04.2007, the assessee was not entitled to deduction u/s. 80P - Held that:- Admittedly, the assessee is primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The Hon'ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. [2016 (4) TMI 826 - KERALA HIGH COURT] had held that a primary agricultural credit society, registered under the Kerala Cooperative Societies Act, 1969 is entitled to the benefit of deduction u/s. 80P(2). Thus we hold that the assessee-society is entitled to the benefit of deduction u/s. 80P of the Act Validity of certificate issued under the Kerala Co-operative Societies Act, 1969, categorizing the assessee as a Primary Agricultural Credit Society (PACS) - Held that:- In the instant case the classification of assessee-society as PACS is admittedly done by the Joint Registrar of Co-operative Societies, who is a competent authority under the KCS Act. The certificate stating that the assessee is classified as a Primary Agricultural Credit Society was issued by the Assistant Registrar. Therefore, the classification was not done by the Assistant Registrar, hence the certificate issued is valid as per law. Hence, grounds raised by the Revenue are dismissed.
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