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2016 (11) TMI 669 - ITAT COCHINBenefit of deduction u/s 80P(2) - Held that:- In the instant case, the assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The certificate has been issued by the Registrar of Cooperative Societies to the above said effect and the same is on record. The Hon’ble High Court, in assessee’s own case and other batch of cases, had held that primary agricultural credit society, registered under the Kerala Cooperative Societies Act, 1969, is entitled to the benefit of deduction u/s 80P(2). Since there is a certificate issued by the Registrar of Cooperative Societies, stating that the assessee is a primary agricultural credit society, thus hold that the assessee is entitled to the benefit of deduction u/s 80P(2) of the Act. Addition u/s 40 (a)(ia)- disallowance of the interest payment on deposits received from non members for the reason that there was no tax deduction at source - Held that:- The assessee is a primary agricultural credit society and as such it is entitled to the benefit of deduction u/s 80P(2) of the Act. Since the assessee is an primary agricultural credit society, the exemption provided for non deduction of tax to primary agricultural credit society u/s 194A(3)(viia) is applicable to the assessee society. Accordingly, the disallowance by invoking the provisions of section 40(a)(ia) is not warranted.
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