TaxTMI 
TaxTMI 
2020 (2) TMI 881
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....ct from 01.04.2007, the assessee will not be entitled to the deduction u/s 80P(2) of the I.T.Act. 3. Aggrieved by the order of assessment denying the claim of deduction u/s 80P(2) of the I.T.Act, the assessee preferred an appeal to the first appellate authority. The CIT(A) allowed the appeal by holding that the assessee was eligible for deduction u/s 80P of the I.T.Act. In allowing the appeal of the assessee, the CIT(A) followed the judgment of 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.). 4. Subsequently, the CIT(A) issued notice u/s 154 of the I.T.Act proposing to rectify his order passed, in view of the subsequent judgment of the Full Bench of the Hon'ble jurisdictional High Court in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT [ITA No.97/2016 order dated 19th March, 2019]. The assessee objected to the issuance of notice. However, the CIT(A) rejected the objections raised by the assessee and passed an order u/s 154 of the I.T.Act, disallowing the claim of the assessee u/s 80P(2) of the I.T.Act. 5. Aggrieved by the order of the CIT(A), the assessee has filed this ....
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....ociety falls under the definition of Co-operative credit society u/s 5 (CCii) of the Banking Regulation Act 1949. 9. It is submitted that if the department is treating the appellant as a Cooperative Bank then all the other deductions and reliefs provided to the said banks should also be made available to the appellant. 10. The appellant is eligible for complete exemption from tax on application of doctrine of mutuality. 11. The status of the appellant is AOP as fixed by the Assessing Officer is not correct with the result that the order passed in the status of AOP is liable to be quashed. 13. For these amongst other grounds that may be permitted to be raised and evidences adduced at the time of hearing, it is prayed that the justice be done to the appellant by quashing or modifying the impugned order of assessment. 6. The learned AR filed detailed written submission challenging the order of the CIT(A) passed u/s. 154 of the I.T. Act. The Ld. AR relied on the following case laws: i) T.S. Balaram, Income-tax Officer vs. Volkart Brothers (1974) 82 ITR 50 (SC) ii) Pr.CIT vs. Ekta Co-op Credit Society Ltd. (2018) 91 taxmann.com 42 (Gujarat) iii) CIT vs. Jafari Momin Vikas....
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....fee Estates Co. Ltd. v. ITAT reported in 174 ITR 579. In this case, the Jurisdictional High Court had held that when an authority has decided on the basis of a decision of the High Court which is subsequently reversed, there would be a rectifiable mistake coming within the section 154 of the Income-tax Act. The Larger Bench of the Hon'ble Kerala High Court has reversed the dictum laid down by the judgment of the Hon'ble Kerala High Court in the case of Chirakkal Service Co-operative Bank Ltd. (supra) by holding that the activities of the assessee has to be examined to determine whether the assessee is Co-operative society or cooperative bank. In the light of the Larger Bench judgment of the Hon'ble Kerala High Court, the earlier CIT(A) order's granting deduction u/s. 80P(2) of the I.T. Act have been rightly recalled by the CIT(A). Therefore the grounds raised by the assessee that the CIT(A) has erred in passing order 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....
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....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 entitled for the benefit of sub-section (4) of Section 80P of the IT Act to ease themselves out from the coverage of Section 80P and that, the authorities under the IT Act cannot probe into any issues or such matters relating to such societies and that, Primary Agricultural Credit Societies registered as such under the KCS Act and classified so, under the Act, including the appellants are entitled to such exemption. 34. In Chirakkal [384 ITR 490] the Division Bench expressed a divergent opinion, without noticing the law laid down in Antony Pattukulangara [2012 (3) KHC 726] and Perinthalmanna [363 ITR 268]. Moreover, the law laid down by the Division Bench in Chirakkal [384 ITR 490] is not good law, since, in view of the law laid down by the Apex Court in Citizen Co-operative Society [397 ITR 1], on a claim for deduction under Section 80P of the Income Tax Act, by reason of sub-section (4) there....