2019 (3) TMI 285

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....ether the assessee is entitled to deduction u/s. 80P(2)(a)(i) of the I.T.Act? 3. Briefly stated the facts of the case are as follows: The assessee is primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. For the assessment years under consideration, the assessee had filed returns of income after claiming deduction u/s. 80P of the I.T. Act. The assessments were completed by denying the deduction u/s. 80P of the I.T. Act. The reasoning of the Assessing Officer's for denying the claim of deduction u/s. 80P of the Act was that the assessee was primarily engaged in the business of banking and therefore, in view of the provisions of section 80P(4) of the I.T. Act which was inserted with effect f....

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....of Chirakkal Service Co-op Bank Ltd. (supra) had held that a primary agricultural credit society, registered under the Kerala Cooperative Societies 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? 6.1 In considering the above question of law, the Hon'ble High Court rendered the following findings: "15. Appellants in these different a....

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.... panchayat or a municipality. This is the consequence of the definition clause in section 2(oaa) of the KCS Act The authorities under the IT Act cannot probe into any issue or such matter relating to such applicants. 16. The position of law 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 wi....