TMI Blog2024 (4) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... 006 and is a Primary Agricultural Credit Society ( PACS in short) and engaged in providing financial assistance to its members for agricultural activities - HELD THAT:- Section 80P(2)(i) of the Act, provides that where co-operative Society is engaged in providing credit facilities to its members, the whole of the amount is entitled for the deduction u/s 80P. In the present case though the assessee has provided the list of persons to whom the credit facilities were provided but failed to establish to the satisfaction of the ld. AO that all such persons are its members. Further from the perusal of the financial statements also it appears that appellant Society has income from trading activity and some other income also. In view of the facts of the case also by respectfully following the judgement of Mavilayi Services Coperative bank ltd. [ 2021 (1) TMI 488 - SUPREME COURT] where the hon ble court opined that even if the credit facilities were provided for non-agricultural purposes to its members, the Society is entitled for the benefit us/ 80P(2)(i) of the Act. Accordingly, we are of the view that the appellant Society is eligible for deduction u/s 80P(2)(i) of the Act but to the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... true to the best of my knowledge and belief. 3. The ld. Counsel appearing on the behalf of the assessee submitted that the considering the facts and circumstances stated in the petition the delay of 105 days may be condoned based on the stated facts. 4. On the other hand, the ld. D/R objected to the petition and stated that appellate order was passed by CIT(A) NFAC and appellant Society was aware of the proceedings being carried out in faceless regime and also participated in the appellate proceedings by filing its written submissions through online mode. It must be in their knowledge that under faceless appellate system no order is served physically by National Faceless Appeal Centre (NFAC in shorty) and it is served online on the assessee s IT portal only and a copy of the same is sent to the registered mail address of the assessee. He thus stated that the plea taken by appellant Society be rejected and delay in filing the appeal should not be condoned. 5. We have heard the rival contentions and also gone through the submissions made by both the parties. So far as the delay in filing of instant appeal, it is a fact that NFAC has delivered the order through online system and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promptly. The idea is that every legal remedy must be kept alive for a legislatively fixed period of time. 12. A court knows that refusal to condone delay would result in foreclosing a suitor from putting forth his cause. There is no presumption that delay in approaching the court is always deliberate 13 It must be remembered that in every case of delay, there can be some lapse on the part of the litigant concerned. That alone is not enough to turn down his plea and to shut the door against him. If the explanation does not smack of mala fides or it is not put forth as part of a dilatory strategy, the court must show utmost consideration to the suitor. But when there is reasonable ground to think that the delay was occasioned by the party deliberately to gain time, then the court should lean against acceptance of the explanation........... 6. In light of the judgment referred above, we find that the intention of the assessee is not malafide and the circumstances stated appears to be bonafide which cannot be ignored in order to impart justice. In view of the above facts, circumstances of the case and the judgment of Hon ble Supreme Court (supra), the delay in filing appeal by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to deduction in terms of the provisions of section 80P(4) of the Act. It is further argued by ld. A/R that appellant Society is providing credit facilities to its members and also provided the details of the persons to whom credit facilities was provided and stated that lower authorities were wrong in observing that the appellant Society had provided credit facilities to non-members. Since the appellant Society is PACS and is providing credit facilities to its members, according to ld. A/R it has rightly claimed the deduction u/s 80P and requested for the restoration of the same. He further placed reliance on the judgement of hon ble Supreme court in the case of The Mavilayi Service Cooperative Bank Ltd. Ors. Vs. CIT, Calicut Anr. in civil appeal Nos. 7343-7350 of 2019 dt. 12.01.2020 and filed the copy of the same before us. 11. Per contra, the Ld. Departmental Representative vehemently argued supporting the orders of both the lower authorities. 12. We have heard the rival contentions and perused the records placed before us. The effective issue before us is that whether the assessee is eligible for deduction u/s. 80P of the Act on the income earned from providing credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of supplying milk, oilseeds, fruits or vegetables, as the case may be; or (ii) the Government or a local authority; or (iii) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act (being a company or corporation engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public), the whole of the amount of profits and gains of such business; (c) in the case of a co-operative society engaged in activities other than those specified in clause (a) or clause (b) (either independently of, or in addition to, all or any of the activities so specified), so much of its profits and gains attributable to such activities as does not exceed,- (i) where such co-operative society is a consumers' co-operative society, one hundred thousand rupees] and (ii) in any other case, fifty thousand rupees Explanation. - In this clause, consumers co-operative society means a society for the benefit of the consumers;] (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the whole of the amount is entitled for the deduction u/s 80P. In the present case though the assessee has provided the list of persons to whom the credit facilities were provided but failed to establish to the satisfaction of the ld. AO that all such persons are its members. Further from the perusal of the financial statements also it appears that appellant Society has income from trading activity and some other income also. 14. The hon ble Supreme court in the case of The Mavilayi Service Cooperative Bank Ltd. Ors. Vs. CIT, Calicut Anr. (supra) has observed as under: 45. To sum up, therefore, the ratio decidendi of Citizen Cooperative Society Ltd. (supra), must be given effect to. Section 80P of the IT Act, being a benevolent provision enacted by Parliament to encourage and promote the credit of the co-operative sector in general must be read liberally and reasonably, and if there is ambiguity, in favour of the assessee. A deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication, as is sought to be done by the Revenue in the present case by adding the word agriculture into Section 80P(2)(a)(i) when it is not th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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