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TMI Blog2020 (6) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... ) is justified in confirming the Assessing Officer's order in denying the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act. 3. The brief facts of the case are as follow: The assessee is a co-operative society registered under the Kerala Co-operative Societies Act, 1969. For the assessment year 2017-2018, return was filed after claiming deduction u/s 80P of the I.T.Act. The assessment order was passed for assessment year 2017-2018, wherein the Assessing Officer disallowed the claim of deduction u/s 80P of the I.T.Act. The reasoning of the Assessing Officer to disallow the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act was that the assessee was essentially doing the business of banking, and therefore, in view of insertion of section 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contrary by the lower authorities are illegal and unsustainable. It is further submitted that on a harmonious and combined reading of all the applicable provisions of law in this connection along with the scheme of the Act, the appellant is clearly eligible for the deduction. A detailed note in support of this ground shall be filed on or before the hearing of this appeal. 3. It is submitted that the denial of deduction u/s 80P( 4) of the Act by the lower authorities is illegal and unsustainable in law on a harmonious and combined reading of all the applicable provisions of law in this connection. A detailed note in support of this ground shall be filed on or before the hearing of this appeal. 4. The learned CIT(A) had passed the order b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication of the doctrine of mutuality. 10. The status of the appellant as AOP as fixed by the AO is not correct with the result that the order passed in the status of AOP is liable to be quashed. 11. It is submitted that the the Special Leave Petition challenging the full bench decision of the Hon'ble Kerala High court in Mavilayil case ITA No: 97/2016 has been admitted by the Hon'ble Supreme Court and the matter is pending. 12. It is submitted that the Chirakkal case is applicable to the appellant in view of the binding decision of the Hon supreme court in Vadilal Chemicals ltd Vs State of AP where it is stated that no tax authorities can reject a binding certificate. It is submitted with utmost respect to the Hon court that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT (supra) 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 Court in Citizen Co-operative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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 Section 80P of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, only a minuscule portion has been advanced for agricultural purposes. The narration in loan extracts / audit reports by itself may not conclusive to prove whether loan is a agricultural loan or a non-agricultural loan. The gold loans may or may not be disbursed for the purpose of agricultural purposes. Necessarily, the A.O. had to examine the details of each loan disbursement and determine the purpose for which the loans were disbursed, i.e., whether it is for agricultural purpose or non-agricultural purpose. In this case, such a detailed examination has not been conducted by the A.O. Further, the A.O. has not examined to what extent loans, if any, has been disbursed to non-members. There is a passing statement in the assessment order t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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