TaxTMI 
TaxTMI 
2019 (6) TMI 1212
X X X X Extracts X X X X
X X X X Extracts X X X X
....fter hearing the Ld. DR. 3. The Revenue has raised the following grounds of appeal: 1) The Learned Commissioner of Income tax (Appeals), Trivandrum erred in concluding that "the appellant is eligible for deduction under section. 80P(2)(a)(i) of the Act on the business income including the interest income earned on the deposits with the other banks and the Treasury." 2) The present appeal involves substantial question of law on the issue of deduction u/s. 80P of the Act: (i) The Ld. CIT(A) ought to have noticed that the respondent is essentially a Co-operative Bank and not merely a primary agricultural credit society and hence the allowance of deduction u/s. 80P to the respondent assessee while computing the total income was irregular....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng credit facilities to its members u/s 80P(2)(a)(i)? (ii) in not duly considering that Nellimood Service Cooperative Bank Ltd is apex bank and not Co-operative Society and cannot be equated with PACs or PCARDB u/s 80P(4) r.w.s 80P? (iii) in not duly considering that the assessee has invested surplus funds like an ordinary investor and it has to be taxed as income from other sources? (iv) in not duly considering the decision of the Apex Court in 322 ITR 283 in the case of M/s Totgars Co-operative Sales Society. 4. For these and other grounds that may be advanced at the time of hearing the order of the learned Commissioner of Income-tax(Appeals), Trivandrum on the above points may be set aside and that of the Assessing Officer restor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....egistered Primary Agricultural Credit Cooperative Society, the CIT(A) held that the assessee is eligible for deduction u/s. 80P of the Act. 6. Against this, the Revenue is in appeal before us. The Ld. DR relied on the order of the Assessing Officer. 7. We have heard the Ld. DR. In our opinion, the issue was considered by the Jurisdictional High Court in the case of Mavilayi Service Co-operative Bank Ltd. vs. CIT reported in ITA No.97/2018 dated 19.03.2019 wherein it was held that the Assessing Officer is not obliged to grant deduction by merely looking at the certificate of registration issued by the competent authority under the Co-operative Societies Act. Instead, he has to conduct an enquiry into the factual situation as to the activit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as also raised for the assessment year 2011-12 which is not emanating from the order of the CIT(A). 9. Against this, the Revenue is in appeal before us. The Ld. DR relied on the order of the Assessing Officer. 10. We have heard the Ld. DR. With regard to the interest income earned by the assessee from other Banks and Treasury on which deduction u/s. 80P(2)(i)(a) of the Act is to be granted, there is no dispute that the assessee has made investments in the course of banking activities and such interest income was received on investments made with cooperative banks and other scheduled banks. The coordinate bench of the Tribunal in the case of Kizhathadiyoor Co-operative Bank Limited cited supra had held that such interest income received by....