TMI Blog2016 (4) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs could be treated as non est in law and invalid for the purpose of deciding exemption under section 80P of the IT Act. - Decided in favour of assessee. - ITA. No. 212 of 2013 - - - Dated:- 15-2-2016 - Thottathil B. Radhakrishnan And K. Harilal, JJ. For the Petitioner : Sri. I. V. Pramod , Dr. K. P. Pradeep For the Respondent : Sri. P. K. R. Menon, Senior SC, GOI ( Taxes), Sri. Jose Joseph, SC I.T.A. Nos. 212, 273, 278, 292, 299 313 of 2013, 156, 188, 189, 190, 191, 192, 193, 197, 198, 199, 201, 202, 203, 204, 205, 206, 207, 209, 211, 212, 214, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 231, 237, 238, 239, 240, 241, 243, 247, 250, 251, 252, 253, 254, 255, 265, 266, 268, 269, 270, 271,272,273,275 281 of 2014 and 25, 26, 29, 30, 32, 34, 35, 37, 38, 39, 40, 41, 42, 45, 46 53 of 2015 JUDGMENT Thottathil B.Radhakrishnan, J . 1. These appeals by primary agricultural credit societies registered and classified as such under the provisions of the Kerala Co-operative Societies Act, 1969, for short, 'KCS Act', relate to exemptions claimed by them with reference to section 80P(4) of Income Tax Act, 1961; hereinafter, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecide many of the fundamental issues as if they are common to all these cases. Some of the matters before the Tribunal were either bunched up and decided in one go, while the others were rendered following the earlier decisions on the same issue. 6. Of prime importance is the plea of the appellants that they are primary agricultural credit societies and are, therefore, eligible to exemption in terms of sub-section 4 of section 80P of the IT Act. The characteristics of the appellants as primary agricultural credit societies including the fact that they are registered under the KCS Act and that their fund management is in terms of the regulatory directions of the Registrar of Co-operative Societies and other aspects are referred to, to show that all the appellants are eligible to the exemption provided for through section 80P(4) of the IT Act. We will detail the relevant statutory provisions as pointed out by the learned senior counsel for the appellants as we proceed with the consideration of the issue in this regard. 7. Submissions were also made on the questions raised relating to the belated filing of returns. Some of the cases are those were returns were filed belatedly; s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P(4) of the IT Act. 11. Part V of the BR Act carries section 56 of that Act, which prescribes modifications to the provisions of the BR Act in their application and in relation to co-operative societies. 12.'Co-operative bank' is a term defined in section 5(cci) of the BR Act to mean, inter alia, a primary co-operative bank. A primary co-operative bank is a co-operative society other than a primary agricultural credit society, going by clause (ccv) of section 5 of the BR Act. Therefore, a primary agricultural credit society is not to be treated as a primary co-operative bank and therefore, not to be reckoned as a co- operative Bank. We state this here and now to point out that the appellants which are primary agricultural credit societies are not of such type that they would fall for consideration as a co-operative bank for the purpose of sub-section 4 of section 80P of the IT Act. Resultantly, the consequential legal implication is that a primary agricultural credit society is one among the two types of institutions which gain the benefit of sub-section 4 of section 80P to ease themselves out from the coverage of section 80P. The argument advanced on behalf of the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t societies by the competent authority under the provisions of that Act. The Parliament, having defined the term 'co-operative society' for the purposes of the BR Act with reference to, among other things, the registration of a society under any State law relating to co-operative societies for the time being; it cannot but be taken that the purpose of the societies so registered under the State Law and its objects have to be understood as those which have been approved by the competent authority under such State law. This, we visualise as due reciprocative legislative exercise by the Parliament recognising the predominance of decisions rendered under the relevant State Law. In this view of the matter, all the appellants having been classified as primary agricultural credit societies by the competent authority under the KCS Act, it has necessarily to be held that the principal object of such societies is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate of interest on such loans and advances to be at the rate fixed by the Registrar of Co-operative Societies under the KCS Act and having its area of operation conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139; and, there are also returns filed after the period with reference to sections 142(1) and 148 of the IT Act. 19. Section 80A(5) provides that where the assessee fails to make a claim in his return of income for any deduction, inter alia, under any provision of Chapter VIA under the heading C.-Deductions in respect of certain incomes , no deduction shall be allowed to him thereunder. Therefore, in cases where no returns have been filed for a particular assessment year, no deductions shall be allowed. This embargo in section 80A(5) would apply, though section 80P is not included in section 80AC. This is so because, the inhibition against allowing deduction is worded in quite similar terms in sections 80A(5) and 80AC, of which section 80A(5) is a provision inserted through the Finance Act 33/2009 with effect from 1.4.2013 after the insertion of section 80AC as per the Finance Act of 2006 with effect from 1.4.2006. This clearly evidences the legislative intendiment that the inhibition contained in sub- section 5 of section 80A would operate by itself. In cases where returns have been filed, the question of exemptions or deductions referable to section 80P would definitely have ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
