2018 (7) TMI 1990

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.... primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. For the assessment year 2014-15, the assessee had filed return of income on 12.10.2014, declaring `Nil' income after claiming deduction amounting to Rs. 1,57,33,033 u/s. 80P(2)(a)(i) of the I.T. Act. The assessment u/s. 143(3) of the Act was completed vide order dated 29.12.2016 by denying the deduction u/s. 80P(2)(a)(i) of the I.T. Act. The reasoning of the Assessing Officer for denying the claim of deduction u/s. 80P(2)(a)(i) 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 from 01.04.2007, the assessee wa....

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....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 appeals are indisputably societies registered under the Kerala cooperative societies Act 1969, for short 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 parliament having defined the term 'co-operative society' for the purposes of the BR Act with reference to, among other things, the registration of a society under any State ....

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....he 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- laws of any of the appellant or its classification by the competent authority under the KCS Act is anything different from what we have stated herein above. For this reason, it cannot but be held that the appellants are entitled to exemption from the provisions of section 80P of the IT Act by virtue of sub- section 4 of that sect; on. In thi....