TaxTMI 
TaxTMI 
2017 (8) TMI 842
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....eals and Cross Objections were heard together and are being disposed of by this consolidated order for the sake of convenience and brevity. 3. We shall first take up for adjudication revenue's appeals. In the revenue's appeals, identical grounds are raised and they read as follows: 1. The order of the learned Commissioner of Income Tax (Appeals) is against law, facts and circumstances of the case. 2. Whether on the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals) is right in law in holding that the assessee is eligible for claiming deduction u/s. 80P of the Income Tax Act when the assessee failed to fulfil the principal objective of providing agricultural credits to members? 3. The Kerala Co-operati....
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....onclusive as the decision was not accepted by the department and SLP is being filed in the Supreme Court. 7. For these and other grounds that may be urged at the time of hearing, it is requested that the order of the CIT(A) may be set aside and that of the Assessing Officer restored. 4. Briefly stated, the facts in relation to the revenue's appeals are as follows: The assessee is a co-operative society registered under the Kerala Cooperative Societies Act, 1969. It is engaged in providing credit facilities to its members. For the assessment years 2009-10 to 2011-12, no returns of income were filed by the assessee. The Assessing Officer issued notices u/s. 148 of the I.T. Act for the above mentioned assessment years on 16/07/2013. Pursu....
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....y the order of the CIT(A) in granting the benefit of deduction u/s. 80P(2) of the Act, the Revenue has filed the present appeals before the Tribunal. The Ld. DR apart from relying on the grounds of appeal, has filed a brief argument note. The argument note submitted by the Ld. DR reads as follows: "In the case of ESCB Ltd., out of the total loan sanctioned, only negligible percentage given for agricultural purpose. Return filed AY Percentage 11-10-2013 (In response to 148) 2009-10 0.56% 11-10-2013 -do- 2010-11 1.25% 11-10-2013 -do- 2011-12 1.69% Hence the Assessing Officer denied the exemption claimed u/s. 80P. The CIT(A) allowed the appeal of the assessee relying on the Kerala High Court decision in the....
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....ieties Act, 1969, is entitled 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? 8.1 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 ....
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....o any issue or 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....