TMI Blog2018 (9) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... suries and Banks was part of the banking activities, and therefore, the said income was entitled to deduction u/s 80P(2)(a)(i). Hence, Padne Service Co-operative Bank Limited v. ITO (I2018 (1) TMI 602 - ITAT COCHIN) we hold that the CIT(A) is justified in directing the A.O. to grant deduction u/s 80P(2)(a)(i) of the I.T. Act for the interest earned on the investments made with sub-treasuries and Banks. It is ordered accordingly. - I.T.A. No.170/Coch/2018 And C.O. No. 48/Coch/2018 - - - Dated:- 3-9-2018 - SHRI CHANDRA POOJARI, AM AND GEORGE GEORGE K., JM For The Revenue : Smt. A.S. Bindhu, DR For The Assessee : Shri Josekutty Jacob, CA ORDER Per GEORGE GEORGE K.,JUDICIAL MEMBER: This appeal at the instanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity. The CIT(A), following the judgment of the Jurisdictional High Court in the case of Chirakkal Service Co-operative Society (384 ITR 490) held that the assessee is entitled to deduction u/s. 80P(2) of the I.T. Act and directed the Assessing Officer to allow deduction u/s. 80P of the Act. As regards the interest income received on investment with sub-treasury and Banks, the CIT(A), following the order of the Tribunal in the case of Kizhathadiyoor Service Co-operative Bank Limited in ITA No.525/Coch/2014 for AY 2009-10 (order dated 20/07/2016), held that the interest income earned by the assessee from other banks and treasury is eligible for deduction u/s. 80P(2)(a)(i) of the Act and directed the Assessing Officer to allow the same. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Parliament re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 section. 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 soc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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