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TMI Blog2020 (7) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the Tribunal. The assessee has filed a petition for condonation of delay along with Affidavit dated 7th May, 2020 from the Secretary of the assessee, stating therein the reasons for delayed filing of this appeal. We have perused the reasons stated in the delay condonation petition. The delay in filing the appeal cannot be attributed any latches of the assessee, hence, the delay in filing this appeal is condoned and we proceed to dispose of the same on merits. 3. The solitary issue raised is whether the CIT(A) 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. 4. The brief facts of the case are as follow: The assessee is a co-operative society registered und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014. 6. Aggrieved by the order passed by the CIT(A), the assessee has preferred this appeal before the Tribunal. 6.1 The learned AR relied on the grounds raised. The learned Departmental Representative, on the other hand, strongly supported the order passed by the Income Tax Authorities. 7. We have heard the rival submissions and perused the material on record. The Hon'ble jurisdictional High Court in the case of Chirakkal Service Co-operative Co-operative Bank Ltd. v. CIT [(2016) 384 ITR 490 (Ker.)] had held that when a certificate has been issued to an assessee by the Registrar of Co-operative Societies characterizing it as primary agricultural credit society, necessarily, the deduction u/s 80P(2) of the I.T.Act has to be granted to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued under the Central or State Co-operative Societies Act and the Rules made thereunder. On such a claim for deduction under Section 80P of the IT Act, the Assessing Officer has to conduct an enquiry into the factual situation as to the activities of the assessee society and arrive at a conclusion whether benefits can be extended or not in the light of the provisions under sub-section (4) of Section 80P. 33. In Chirakkal [384 ITR 490] the Division Bench held that the appellant societies 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Apex Court in Citizen Cooperative Society [397 ITR 1] the law laid down by the Division Bench Perinthalmanna [363 ITR 268] has to be affirmed and we do so. 35. In view of the law laid down by the Apex Court in Ace Multi Axes Systems' case (supra), since each assessment year is a separate unit, the intention of the legislature is in no manner defeated by not allowing deduction under Section 80P of the IT Act, by reason of sub-section (4) thereof, if the assessee society ceases to be the specified class of societies for which the deduction is provided, even if it was eligible in the initial years." 7.1 In the instant case, the Assessing Officer had denied the claim of deduction u/s 80P of the I.T.Act for the reason that assessee was es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly conclude that the assessee's activities are not in compliance with the activities of primary agricultural credit society functioning under the Kerala Co-operative Societies Act, 1969, before denying the claim of deduction u/s 80P(2) of the I.T.Act. For the above said purpose, the issue raised in this appeal is restored to the files of the Assessing Officer. The Assessing Officer shall examine the activities of the assessee-societies by following the dictum laid down by the Full Bench of the Hon'ble jurisdictional High Court in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT (supra) and shall take a decision in accordance with law. Needless to state, the assessee shall co-operate with the A.O. and shall furnish the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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