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2020 (2) TMI 154
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....ciety registered under the Kerala Co-operative Societies Act, 1969. For the assessment years, 2010-11 to 2012-13 and 2014-15, the returns of income were filed after claiming deduction u/s 80P of the I.T.Act. The Assessing Officer passed assessment orders for the above mentioned assessment years, disallowing the claim of deduction u/s 80P of the I.T.Act. The reasoning of the Assessing Officer to disallow the claim of deduction u/s 80P(2) of the I.T.Act was that the assessee was doing the business of banking, and therefore, in view of insertion of section 80P(4) of the I.T.Act with effect from 01.04.2007, the assessee will not be entitled to the deduction u/s 80P(2) of the I.T.Act. The Assessing Officer also disallowed the claim of deduction ....
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....er by the Commissioner of Income Tax(Appeals) under section 154 r.w.s. 250 of the I.T. Act, 1961 is illegal and unsustainable. 2. Under the guise of rectification of mistake the Commissioner of Income tax has reversed its order u/s. 250 by an elaborate order which is beyond the scope of section 154 of the I.T. Act. 3. In the original order passed by the Commissioner of Income-tax(Appeals) on 17-12-2018 there was no mistake to be rectified as the decision referred to (414 ITR 67) in the impugned order, based on which he invoked section 154, was rendered by the Full Bench of the Hon'ble High Court of Kerala only later, on 19-03- 2019. 4. The CIT(A) erred in resorting to a later decision for rectifying an alleged mis....
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....sing orders u/s. 154 of the I.T. Act are dismissed. 7.1 The Hon'ble jurisdictional High Court in the case of Chirakkal Service Co-operative Co-operative Bank Ltd. v. CIT [(2016) 384 ITR 490 (Ker.)] had held that when a certificate has been issued to an assessee by the Registrar of Co-operative Societies characterizing it as primary agricultural credit society, necessarily, the deduction u/s 80P(2) of the I.T.Act has to be granted to the assessee. However, the Full Bench of the Hon'ble Kerala High Court in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT (supra) had reversed the above findings of the Hon'ble Kerala High Court in the case of Chirakkal Service Co-operative Co-operative Bank Ltd. v. CIT (supra). The Larger Benc....
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....lusion whether benefits can be extended or not in the light of the provisions under sub-section (4) of Section 80P. 33. In Chirakkal [384 ITR 490] the Division Bench held that the appellant societies 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 to be fixed by the Registrar of Co-operative Societies under the KCS Act and having its area of operation confined to a Village, Panchayat or a Municipality and as such, they are enti....
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....ssessment year is a separate unit, the intention of the legislature is in no manner defeated by not allowing deduction under Section 80P of the IT Act, by reason of sub-section (4) thereof, if the assessee society ceases to be the specified class of societies for which the deduction is provided, even if it was eligible in the initial years." 7.2 The CIT(A) had initially allowed the appeals of the assessee and granted deduction u/s 80P(2) of the I.T.Act. Subsequently, the CIT(A) passed orders u/s 154 of the I.T.Act, wherein the claim of deduction u/s 80P of the I.T.Act was denied, by relying on the judgment of the Larger Bench of the Hon'ble jurisdictional High Court in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT (su....