Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 669 - ITAT COCHIN

2016 (11) TMI 669 - ITAT COCHIN - TMI - Benefit 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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. - ITA No. 293/Coch/2013, ITA No. 402/Coch/2013, Cross Objection N .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-10, the return of income was filed on 30.3.2011 declaring nil income. The assessment was completed u/s 143(3) of the Act vide order dated 23.12.2011. While completing the assessment, the Assessing Officer disallowed the claim of deduction u/s 80P(2) of the Act. The deduction u/s 80P(2) was denied by the Assessing Officer for the reason that the assessee had not fulfilled its main object of providing financial accommodation to its members for agricultural purpose and therefore, was not entitled .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s not applicable in the assessee s case as the assessee not a primary agricultural credit society. 4 Aggrieved, the assessee society preferred appeal to the first appellate authority. The CIT(A) held that the assessee was not entitled to the benefit of deduction u/s 80P(2) of the Act. As regards the disallowance u/s 40(a)(ia) of the Act, the CIT(A), following the order of the Tribunal in the case of M/s Kadachira Service Coop Bank Ltd vs ITO, in ITA No.251/Coch/2012(order dated 31.1.2013) held t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Aggrieved by the order of the Tribunal, the assessee preferred further appeal to the Hon ble Kerala High Court u/s 260A of the Act. The Hon ble Kerala High Court vide judgment dated 15.2.2015 in ITA No.25 of 2015 had restored the matter to the Tribunal. It is in this context, the case was heard on 14th Oct 2016. 7 I have heard the rival parties and perused the material on record. The Hon ble High Court, in the case of Chirakkal Service Co-op Bank Ltd., reported in 384 ITR 490 had held that a pri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

exemption under section 80P, ignoring the fact that the assessee is a primary agricultural credit society? 7.1 In considering the above substantial question of law, the Hon ble High Court rendered the following findings: 15. Appellants in these different appeals are indisputably societies registered under the Kerala co-operative societies Act, 1969, for sort, KCS Act and the bye-laws of each of them, as made available to this court as part of the paper books, clearly show that they have been cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 acti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aw being as above with reference to the statutory provisions, the appellants had shown to the authorities and the Tribunal that they are primary agricultural credit societies in terms of clause (cciv) of section 5 of the BR Act, having regard to the primary object or principal business of each of the appellants. It is also clear from the materials on record that the bye-laws of each of the appellants do . not permit admission of any other co-operative society as member, except may be, in accorda .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y virtue of sub- section 4 of that sect; on. In this view of the matter, the appeals succeed. 17. In the light of the aforesaid, we answer substantia1 question 'A' in favour of the appellants and hold that the Tribunal erred in law in deciding the issue regarding the entitlement of exemption under section 80P against the appellants. We hold that the primary agricultural credit societies, registered as such under the KCS Act; and classified so, under that Act, including the appellants are .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version