2016 (10) TMI 1261

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....is justified in confirming the action of the Assessing Officer in disallowing the benefit of deduction u/s. 80P(2) of the Act. 3. Briefly stated the facts of the case are as follows: The assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. For the assessment year 2012-13, the return of income was filed declaring nil income after claiming deduction u/s. 80P of the Income Tax Act. The Assessing Officer passed the best judgment assessment u/s. 144 of the Act by denying the benefit of deduction u/s. 80P(2) of the Act. The Assessing Officer was of the view that as the assessee-Society was primarily engaged in the business of banking and in view of the provisions of section 80P....

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.... 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? 7.1 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 to this court as part of the paper books, clearly show that they have been classified as primary agricultural credit societies by the competent authority under the provisions of that Act. The parl....

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....ities 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 of fact to the effect that the bye- 1aws of any of the appellant or its classification by the competent authority under the KCS Act ls anything different from what we ha....