TMI Blog2017 (11) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 80P(2) of the Act, we are of the view that the CIT(A) is justified in directing the Assessing Officer to grant the benefit of deduction u/s. 80P(2) of the Act. - ITA No. 512/Coch/2016, ITA No.27/Coch/2017, ITA No.28/Coch/2017, CO No.3, 10, 11/Coch/2017 - - - Dated:- 16-11-2017 - Shri Abraham P. George, AM Shri George George K, JM Revenue by : Sri. A.Dhanaraj, Sr.DR Assessee by : Dr.K.P.Pradeep ORDER Per Abraham P. George, AM These appeals at the instance of the Revenue and Cross Objection at the instance of the assessee are directed against two orders of the CIT(A) dated 31.10.2016 and 05.12.2016. The relevant assessment years are 2008-2009, 2010-2011 and 2011-2012. 2. Since common issue is raised in thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Income Tax Act cannot probe into question whether the assessee cooperative society is a 'primary agricultural credit society', once it is registered and classified as 'primary agricultural credit society' by the competent authorities under the provisions or the Kerala Cooperative Societies Act,1969. 3. The learned CIT(Appeals) ought to have brought his attention to the decision of the honourable High Court in the case of Perinthalmanna Service Cooperative Bank Ltd, reported in (2014) 363 ITR 68 (Kerala) wherein it was held that 'with introduction of section 80P(4) necessarily, an enquiry has to be conducted into factual situation whether cooperative bank is conducting business as a primary agricultural c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cooperative society doing business of banking is not entitled to the benefit of deduction u/s. 80P(2) of the Act. 4.2 Aggrieved by the action of the Assessing Officer in denying the claim of deduction u/s. 80P(2) for the assessment years 2008-2009, 2010-2011 and 2011-2012, the assessee filed the appeals before the first appellate authority. The CIT(A) allowed the appeals of the assessee. The CIT(A) directed the Assessing Officer to grant deduction u/s. 80P(2) of the Act for the assessment years 2008-2009, 2010-2011 and 2011-2012. The CIT(A), In taking the above view, relied on the judgment of the Hon ble Kerala High Court in the case of Chirakkal Service Co-operative Bank Limited vs. CIT reported in 284 ITR 490. 4.3 Aggrieved by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each of them, as made available to this court as part of the paper books, clearly show that they have been classified as primary agricultural credit societies by the competent authority under the provisions of that Act. The parliament, having defined the term 'cooperative 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 Parli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals do not contain any finding of fact to the effect that the bye- 1aws of any of the appellant or its classification by the competent authority under the KCS Act is anything different from what we have stated herein above. For this reason, it cannot but be held that the appellants are entitled to exemption from the provisions of section 80P of the IT Act by 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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