2014 (5) TMI 556

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....oceedings under section 143(3) of the Income-tax Act, 1961 (in short the 'Act'). As the facts and issues involved in both cases are identical, we take up I.T.A.No.293/Mds/2014 in case of S.1382 Mullukurichi Primary Agricultural Co-operative Credit Society Ltd. as the 'lead' case. 2. It is to be seen from the grounds raised in the appeal that assessee's pleadings are two folded i.e it challenges the action of the CIT(A) in confirming the order of the Assessing Officer denying claim of deduction u/s 80P(2)(a)(i) and also in restricting other deduction u/s 80P(2)(c)(ii) to Rs. 50,000/- from Rs.1 lakh as admissible. 3. As regards the first substantive ground, the assessee argues that being a primary agricultural co-operative credit societ....

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....assessee benefit of deduction u/s 80P(2) of the Act. At the same time, a proportionate deduction was computed qua receipts arising from 'farming' sector. In this manner, the assessee's taxable income was computed as Rs. 30,38,463/-. 6. Aggrieved, the assessee preferred appeal. In the lower appellate proceedings, so far as the findings of the Assessing Officer holding the assessee as a 'bank' u/s 80P(4) are concerned, they stand overruled in view of the decision of the 'tribunal' in ITO vs Kasipalayam Primary Agricultural Co-operative Bank Ltd 2014(2) TMI 676. However, in CIT(A)'s view, since the assessee had also advanced credit and other facilities to the 'nominal' or 'B' class members, its claim is hit by 80P(2)(a)(i) of the Ac....