TMI Blog2018 (8) TMI 2060X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee-Society is entitled to the benefit of deduction u/s. 80P(2) of the Act. Whether the assessee was entitled to deduction u/s 80P(2)(a)(i) of the I.T. Act for the interest received on investment made with sub-treasuries and banks? - As relying on Padne Service Co-operative Bank Limited [ 2018 (1) TMI 602 - ITAT COCHIN ] Interest earned from investment with sub-treasuries and Banks was part of the banking activities, and therefore, the said income was entitled to deduction u/s 80P(2)(a)(i) of the I.T. Act. Hence, we hold that the CIT(A) is justified in directing the A.O. to grant deduction u/s 80P(2)(a)(i) of the I.T. Act for the interest earned on the investments made with sub-treasuries and Banks. Appeal filed by the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to deduction u/s. 80P(2) of the Act. Further, the Assessing Officer assessed the interest income received by the assessee on investment made with sub-treasury and banks under the head 'income from other sources'. 4. Aggrieved by the order of the assessment, the assessee preferred appeal before the first appellate authority. The CIT(A), following the judgment of the Jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd. (384 ITR 490) held that the assessee is entitled to deduction u/s. 80P(2) of the I.T. Act and directed the Assessing Officer to allow deduction u/s. 80P of the Act. As regards the interest income received on investment with sub-treasury and Banks, the CIT(A), following the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the assessee is a primary agricultural credit society? 6.1 In considering the above question of law, the Hon'ble High Court rendered the following findings: 15. Appellants in these different appeals are indisputably societies registered under the Kerala cooperative societies Act 1969, for short KCS Act, and the bye-laws of each of them, as made available to this court as part of the paper books, clearly show that they have been classified as primary agricultural 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants. It is also clear from the materials on record that the bye-laws of each of the appellants do not permit admission of any other co-operative society as member, except may be, in accordance with the proviso to sub-clause 2 of section 5(cciv) of the BR Act. The different orders of the Tribunal which are impeached in these appeals do not contain any finding of fact to the effect that the bye- laws of any of the appellant or its classification by the competent authority under the KCS Act is 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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