TMI Blog2016 (7) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... ocieties Act, 1969 is entitled to the benefit of deduction u/s 80P(2). The primary agricultural credit societies, registered as such under the KCS Act; and classified so, under that Act, including the appellants are entitled to such exemption - Decided in favour of assessee - ITA Nos 660, 715 to 718, /Coch/2013, 338, 191/Coch/2016 (Asst Yea 2007-08 to 2010-11) - - - Dated:- 19-7-2016 - S/Shri B P Jain And George George K, JJ. Assessee By Sh Vedanga, R Prabhu, Sh Anil D Nair, Sh George Thomas, None- adjournment petition filed Revenue By Sh A Dhanaraj, Sr DR ORDER B P Jain, These are seven appeals filed by different assessees arise out of the separate orders of the CIT(A) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO in denying the deduction u/s 80P(2) of the Act. 5 Briefly stated the facts of the case are as follows: The assessee, in all these appeals, is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. It is engaged in the business of providing agricultural credit to its members. The claim of deduction u/s 80P (2) was denied by the AO for the reason that the assessee is primarily engaged in the business of banking and in view of section 80P(4) of the Act, the assessee is not entitled to deduction u/s 80P(2) of the Act. The view taken by the AO was confirmed by the CIT(A). 6 The assessee being aggrieved is in appeal before us. The ld counsel for the assessee submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gricultural credit societies by the competent authority under the provisions of that Act. The parliament, having defined the term 'co-operative 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 recognising the predominance of decisions rendered under the relevant State Law. In this view of the matter, all the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the competent authority under the KCS Act lS 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 credit societies, registered as such under the KCS Act; and classified so, under that Act, including the appellants are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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