TaxTMI 
TaxTMI 
2019 (8) TMI 186
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....ng Counsel accepting notice for the respondent. 2. These appeals, filed by the assessee under Section 260A of the Income Tax Act, 1961 (for short, the Act), are directed against the orders (i) dated 31.8.2018 made in MP.No.90/Chny/2018 in ITA.No.2332/ Chny/2017 and (ii) dated 27.3.2018 made in ITA.No.2332/Chny/2017 respectively, on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2014-15. 3. The assessee has filed these appeals by raising the following substantial questions of law : "i. In the facts and circumstances of the case, where the appellant is admittedly a primary agricultural cooperative credit society registered under the Tamil Nadu Cooperative Societies Act, whether ....
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....the said submission, TCA.No.485 of 2019 is dismissed. No costs. 6. TCA.No.486 of 2019 is directed against the substantive order passed by the Tribunal dated 27.3.2018 and this appeal is entertained only on the first substantial question of law, which reads as hereunder : "In the facts and circumstances of the case, where the appellant is admittedly a primary agricultural cooperative credit society registered under the Tamil Nadu Cooperative Societies Act, whether the Appellate Tribunal is correct in rejecting the deduction claimed by the appellant under Section 80P(2)(a)(i) of the Income Tax Act?" 7. It is not disputed by the learned counsel on either side that the substantial question of law entertained in this appeal was....
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.... were filed by the assessee wherein the assessee produced copies of sample sales bills to prove that the assessee sold fertilizers only to members and they contended that in view of the same, they are entitled to deduction in terms of Section 80P(2)(iv) of the IT Act. 10. Further, it is relevant to note that the TNCS Act, 1983 defines the expression 'credit society' under Section 2(13) to mean a registered society as defined under Section 2(22), which has its principal object of raising funds to be lent to its members for the purposes of agriculture, animal husbandry, etc., or for such other purposes as the Government may, by notification, specify in this behalf. Thus, a credit society as defined under the provisions of the....
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....l Nadu, as communicated by the Registrar of Cooperative Societies, are binding on the appellant society. Hence, it cannot be said that the appellant carried on an activity, which was not authorized to be conducted by a credit society. 14. One more argument is advanced by the learned Senior Standing Counsel for the Revenue by contending that there were two categories of people, to whom the items under the PDS were sold. 15. We find that this argument is wholly unsubstantiated and factually incorrect. In this regard, we have earlier referred to the grounds of appeal as well as the written submissions given by the appellant/assessee before the CIT (A) wherein the appellant had produced sample sales bills to prove that they ha....
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....income from business and held that the assessee was not entitled to exemption under Section 80P(2)(a)(i) of the IT Act. The assessee filed an appeal before the Tribunal and it was allowed. On appeal by the Revenue to the High Court, the question, which was referred to the Court for consideration, was as to whether the income earned by way of commission from the Electricity Board and other organizations is attributable to business of banking and as such, the relief under Section 80P(1) read with Section 80P(2)(a)(i) of the IT Act was allowable to the assessee. The Division Bench of the Bombay High Court pointed out that the word 'banking' was not restricted only to accepting deposits from the customers for the purpose of lending, tha....
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....Supreme Court in the case of Citizen Cooperative Society Limited Vs. ACIT, Circle 9(1), Hyderabad [reported in (2017) 88 Taxmann.com 279]. By the said order, the review petition filed by the said society to review the judgment reported in (2017) 84 Taxmann.com 114 was rejected. 19. From the facts given in the copy of the judgment handed over to us by the learned Senior Standing Counsel for the Revenue, we find that in the decision in Citizen Cooperative Society Limited, the assessee was engaged in granting loans to general public without any approval from the Registrar of Societies. Therefore, the Court held that the assessee could not be treated as a cooperative society meant only for providing credit facilities to its members and....