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TMI Blog2019 (5) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... itary issue that is raised is whether the CIT(A) is justified in confirming the denial of deduction u/s 80P(2) of the I.T.Act, for the reason that no return of income was filed by the assessee? 3. Briefly stated the facts of the case are as follows: The assessee is registered as a primary agricultural credit society under the Kerala Co-operative Societies Act, 1969. For the assessment years 2010-2011 and 2011-1012 the Assessing Officer denied the benefit of deduction u/s 80P(2) of the I.T.Act on the ground that the assessee did not file the return of income. The view taken by the Assessing Officer was affirmed by the CIT(A). 4. Aggrieved by the order of the CIT(A), the assessee has filed these appeals for the assessment years 2010-2011 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly before the appellate authority has to be considered for claiming deduction u/s 80P(2) of the I.T.Act. The Hon'ble High Court was considering the following questions of law:- "(B) Whether the Tribunal is justified in denying the exemption under section 80P of the Income Tax Act, 1961, on the mere ground of belated filing of return by the assessee? (C) Whether a return filed by the assessee beyond the period stipulated under section 139(1)/(4) or section 142(1) / 148 can be held as non est in law and invalid for the purpose of deciding exemption under section 80P of the Income Tax Act, 1961?" 6.1 In deciding the above questions, the Hon'ble High Court held as follows:- 19. Section 80A(5) provides that where the assessee fails to mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effectuated as a claim duly made as part of the returns so filed, for due consideration. 21. When a notice under section 142(1) is issued, the person may furnish the return and while doing so, could also make claim for deduction referable to section 80P. Not much different is the situation when pre-assessment enquiry is carried forward by issuance of notice under section 142(1) or when notice is issued on the premise of escaped assessment referable to section 148 of the IT Act. This position notwithstanding, when an assessment is subjected to first appeal or further appeals under the IT Act or all questions germane for concluding the assessment would be relevant and claims which may result in modification of the returns already filed coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [ITA No.97/2016 order dated 19th March, 2019] held that the Assessing Officer has to conduct an inquiry into the factual situation as to the activities of the assessee society to determine the eligibility of deduction u/s 80P of the I.T.Act. It was held by the Hon'ble High Court that the Assessing Officer is not bound by the registration certificate issued by the Registrar of Kerala Co-operative Society classifying the assessee-society as a co-operative society. The Hon'ble High Court held that each assessment year is separate and eligibility shall be verified by the Assessing Officer for each of the assessment years. The finding of the Larger Bench of the Hon'ble High Court reads as follows:- "33. In view of the law laid down by the Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out from the coverage of Section 80P and that, the authorities under the IT Act cannot probe into any issues or such matters relating to such societies and that, Primary Agricultural Credit Societies registered as such under the KCS Act and classified so, under the Act, including the appellants are entitled to such exemption. 34. In Chirakkal [384 ITR 490] the Division Bench expressed a divergent opinion, without noticing the law laid down in Antony Pattukulangara [2012 (3) KHC 726] and Perinthalmanna [363 ITR 268]. Moreover, the law laid down by the Division Bench in Chirakkal [384 ITR 490] is not good law, since, in view of the law laid down by the Apex Court in Citizen Co-operative Society [397 ITR 1], on a claim for deduction under S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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