TMI Blog2019 (3) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... No.10/Coch/2019 - - - Dated:- 1-3-2019 - Shri Chandra Poojari, AM Shri George George K, JM For the Appellant : Smt.A.S.Bindhu, Sr.DR For the Respondent : Sri. T.M.Sreedharan, Advocate ORDER PER GEORGE GEORGE K, JM These appeals at the instance of the Revenue are directed against common order of the CIT(A) dated 22nd October, 2018. The relevant assessment years are 2013-2014, 2014-2015 and 2015-2016. 2. The only identical issue raised in these appeals is whether the assessee is entitled to deduction u/s. 80P(2)(a)(i) of the I.T.Act? 3. Briefly stated the facts of the case are as follows: The assessee is primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned AR, on the other hand, submitted that the issue in question is squarely covered in favour of the assessee by the judgment of the Hon'ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. reported in 384 ITR 490. 6. We have heard the rival submissions and perused the material on record. Admittedly, the assessee is primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The Hon'ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. (supra) had held that a primary agricultural credit society, registered under the Kerala Cooperative Societies Act, 1969 is entitled to the benefit of deduction u/s. 80P(2). The Hon'ble High Court was consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants 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 Ad and having its area of operation confined to a village, panchayat or a municipality. This is the consequence of the definition clause in section 2(oaa) of the KCS Act The authorities under the IT Act cannot probe into any issue or such matter relating to such applicants. 16. The position of law being as abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 6.2 In view of the judgment of the Hon'ble Jurisdictional High Court in the case of Chirakkal Service Co-op Bank Ltd. (supra), we hold that the assessee-societies are entitled to the benefit of deduction u/s. 80P of the Act. It is ordered accordingly. 6.3 Further, the decision of the Hon ble Apex Court, relied on by the Revenue in the case of Citizen Co-operative Society Ltd. v. ACIT , is not applicable to Co-operative Societies registered as primary agricultural credit societies in Kerala, in view of the order of ITAT Cochin Bench in the case of ITO v. M/s.Maruthonkara Service Co-operative Bank Ltd. [ITA No.474/Coch/2017 order dated 08.03.2018] . 7. In the result, the appeals filed by the Revenue are dismissed. O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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