TaxTMI 
TaxTMI 
2018 (10) TMI 364
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.... "1. The Order of the Commissioner of Income tax (Appeals-II), Kochi, in ITA No.15A/ALY/CIT(A)-II/15- 16 dated 19-10-2016, is opposed to law, facts and circumstances of the case. 2. The learned Commissioner of Income Tax (A) erred in allowing the assessee's appeal holding the facts and circumstance of the case as identical to the case of Chirakkal Service Co-operative Bank Ltd, Kannur Vs. CIT 2016(2) KHC 726 decided by the Honourable High Court of Kerala. The decision of the Honourable High Court relates to the exemption in terms of Section 80P(4) in respect of Co- operative Banks classified as 'Primary Co-operative Agricultural Credit Society whereas the assessee is registered as 'Primary Co-operative Agricultural a....
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....hard and fast definition. The learned Commissioner of Income Tax {A} erred in not considering the Assessing Officer's finding that during the Assessment year 2012-13, for a period of seven months from 01-04-2011 to 31-10-2011, the area of operation of the assessee extended to two taluks, Aluva and Paravur and as such for the A.Y 2012-13 the condition of Explanation (Q) of Section 80P(4) of a "society having its area of operation confined to a taluk" is not met. 4. The learned Commissioner of Income Tax (A) erred in not considering the Assessing Officer's finding that the bye-laws of the bank do not specify that the principal object of the bank is to provide long term credit for agriculture and rural development. ....
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....of the I.T.Act as well as 80P(2)(c) of the I.T.Act. The relevant finding of the CIT(A) read as follows:- "7. I have gone through assessment order and submission of the appellant. I find this issue squarely covered by the decision of the Hon'ble jurisdictional High Court in the case of Chirakkal Service Cooperative Bank Ltd., Kannur Vs. CIT 2016 (2) KHC 726, as the facts and circumstances of the instant case is identical to the one decided by Hon'ble Kerala High Court. Respectfully following the decision of Hon'ble Kerala High Court in the above mentioned case, I hold that the appellant is eligible for deduction u/s 80P(2)(a)(i) and 80P(2)(c) and the assessing officer is directed to allow the deduction to the appellant." ....
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....ne taluk. Provisions of section 80P is very clear and benefit of the section can be granted only to those co-operative societies, whose activities are confined only to one taluk. In the instant case, the Assessing Officer has held that the assessee's operations during the relevant assessment year have extended to two taluks, viz., Aluva and Paravoor. This finding of the Assessing Officer has been objected to by the assessee by stating that the bye-laws have been amended during the relevant assessment year and the assessee's operations were confined to only Aluva taluk. We find that this issue was not adjudicated by the CIT(A), and therefore, in the interest of justice and equity, we deem it appropriate to restore the matter to the CIT(A) fo....