TMI Blog2018 (7) TMI 2302X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It is ordered accordingly. Interest earned on investment made with sub-treasuries and bank deposits - Tribunal had decided the issue in favour of the assessee in assessee s own case [ 2016 (7) TMI 1405 - ITAT COCHIN] concerning the assessment year 2009-10 - we hold that the CIT(A) is justified in directing the Assessing Officer to grant deduction in respect of interest income earned on investment in sub-treasuries and bank deposits u/s. 80P(2)(a)(i) Appeals filed by the Revenue are dismissed. - I.T.A. Nos.139 & 140/Coch/2018 - - - Dated:- 23-7-2018 - S/SHRI CHANDRA POOJARI, AM GEORGE GEORGE K., JM For the Revenue : Shri A. Dhanaraj, Sr. DR For the Assessee : Shri Prasanth Srinivas, CA ORDER Per GEO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014 declaring Nil income after claiming deduction u/s. 80P of the I.T. Act at Rs.1,25,23,142/-. The assessments u/s. 143(3) of the Act were completed for AYs 2011-12 and 2012-13 vide orders dated 27/03/2014 and 26/03/2014 respectively. The Assessing Officer did not allow the claim of deduction u/s. 80P(2) of the I.T. Act for both the years. The reasoning of the Assessing Officer to disallow the claim of deduction u/s. 80P of the Act was that the assessee was primarily engaged in the business of banking and by virtue of insertion of subsection (4) to section 80P of the I.T. Act with effect from 1/4/2007, the assessee was not entitled to deduction u/s. 80P(2) of the Act for both the years . 4. Aggrieved by the denial of the benefit of dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to the benefit of deduction u/s. 80P(2). The Hon ble High Court was considering the following substantial question of law: a) Whether on the facts and in the circumstances of the case under consideration, the Tribunal is correct in law in deciding against the assessee, the issue regarding entitlement for exemption under section 80P, ignoring the 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 co-operative societies Act, 1969, for sort, KCS Act and the bye-laws of each of them, as made available to this court a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such matter relating to such applicants. 16. The position of 1aw being as above with reference to the statutory provisions, the appellants had shown to the authorities and the Tribunal that they are primary agricultural credit societies in terms of clause (cciv) of section 5 of the BR Act, having regard to the primary object or principal business of each of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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