2017 (3) TMI 1039

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....tion u/s 80P(2) was denied by the Assessing Officer for the reason that the assessee is primarily engaged in the business of banking and in view of section 80P(4) of the Act, the assessee is not entitled to deduction u/s 80P(2) of the Act. 3 Aggrieved by the assessment, the assessee preferred an appeal to the first appellate authority. The CIT(A) confirmed the assessment order. 4 Aggrieved by the order of the CIT(A), the assessee preferred appeal to the Tribunal. The Tribunal vide its order dated 6th March 2015 disposed off the appeal of the assessee holding that the assessee was not entitled to the benefit of deduction u/s 80P of the Act. 5 Aggrieved by the order of the Tribunal, the assessee preferred further appeal before the Ho....

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.... with reference to, among other things, the registration of a society under any State law relating to co-operative societies for the time being; it cannot but be taken that the purpose of the societies so registered under the State Law and its objects have to be understood as those which have been approved by the competent authority under such State law. This, we visualise as due reciprocative legislative exercise by the Parliament recognising the predominance of decisions rendered under the relevant State Law. In this view of the matter, all the appellants 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....

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....m the provisions of section 80P of the IT Act by virtue of sub- section 4 of that sect; on. In this view of the matter, the appeals succeed. 17. In the light of the aforesaid, we answer substantia1 question 'A' in favour of the appellants and hold that the Tribunal erred in law in deciding the issue regarding the entitlement of exemption under section 80P against the appellants. We hold that the primary agricultural credit societies, registered as such under the KCS Act; and classified so, under that Act, including the appellants are entitled to such exemption." 6.2 In the instant case, the assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The certificate has b....