TaxTMI 
TaxTMI 
2016 (11) TMI 1615
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....ioner of Income tax (Appeals), Kottayam in so far as the points stated below are concerned, is opposed to law on the facts and in the circumstances of the case. 2. The Ld. Commissioner of Income Tax (Appeals) has erred in allowing deduction of Rs. 2,96,19,669/- under section 80P(2)(a)(i) of the Act in respect of the unexplained cash credit assessed u/s 68 of the Act. 3. The Ld. CIT (A) ought to have appreciated the fact that deemed income u/s 68 of the Income Tax Act cannot be treated as income from providing credit facilities to the members of the Society, as envisaged in section 80P(2)(a)(i) of the Income Tax Act. 4. The Ld. CIT (A) ought to have further appreciated that the order of the Kerala High Court in the....
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....384 ITR 490 held that the assessee is entitled for deduction u/s 80P(2) of the I T Act. As regards the addition made u/s 68, the CIT held that since assessee could not furnish the full details of the deposit, the addition made by the Assessing Officer is justified. The CIT(A), however, with regard to the addition made u/s 68, held that deduction u/s 80P to the extent of enhanced income is eligible. 5 Aggrieved by the order of the CIT(A), the revenue is in appeal before us. The ld DR relied on the ground raised in the appeal memo. On the other hand, the ld counsel for the assessee reiterated the submissions made before the income tax authorities and supported the order of the CIT(A). 6 We have heard the rival submissions and perused th....
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....ed 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 to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate 'of interest on such loans and advances to be at the rate fixed by the Registrar of co-operati....
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....on '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, which has been issued by the Registrar of Cooperative Societies, to the above effect, is placed on record. The Hon'ble jurisdictional High Court had held that primary agricultural credit societies registered under the....