AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 623
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....consolidated order. 3. The solitary issue that is raised is whether the CIT(A) is justified in confirming the Assessing Officer's order in denying the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act. 4. The brief facts of the case are as follow: The assessee is a co-operative society registered under the Kerala Co-operative Societies Act, 1969. For the assessment years 2009-2010 and 2014-2015, returns were filed after claiming deduction u/s 80P of the I.T.Act. The assessment orders were passed for assessment years 2009- 2010 and 2014-2015, wherein the Assessing Officer disallowed 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)(a)(i) of the I.T.Ac....
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....uthority went wrong in taking in myopic view of ratio of the Judgment of full Bench reported in [2019]414 ITR 67 (Ker) [FB]. In fact, the Full Bench has directed the Assessing authority to look into the activity undertaken by the Assessee before rejecting the claim of exemption under Sec. 80P. In the facts of the case, it is respectfully submitted that the assessing authority proceeded to reject the claim of the Appellant on the premise that the Appellant is a Primary Co-operative Bank and hence not entitled for exemption. It is therefore respectfully submitted that the issue to be decided is whether the Appellant is a Primary Agricultural Credit Society or a Primary Co-operative Bank as contemplated in the Banking Regulation Act 1949. ....
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.... a Primary Agricultural Credit Society. Therefore, applying the ratio of the judgment of the Hon'ble Supreme Court reported in (2003) 259 ITR 9, the entire proceedings are vitiated and is liable to be quashed and set aside. E. For these and other grounds and documents to be submitted at the time of hearing and it is therefore humbly prayed that the Honorable Tribunal be pleased to allow the appeal." 6.1 The learned AR relied on the grounds raised. The learned Departmental Representative, on the other hand, strongly supported the orders passed by the Income Tax Authorities. 7. We have heard the rival submissions and perused the material on record. The Hon'ble jurisdictional High Court in the case of Chirakkal Service Co-operat....
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....ded that, while considering the claim made by an assessee society for deduction under Section 80P of the IT Act, after the introduction of sub-section (4) thereof, the Assessing Officer has to extend the benefits available, merely looking at the class of the society as per the certificate of registration issued under the Central or State Co-operative Societies Act and the Rules made thereunder. On such a claim for deduction under Section 80P of the IT Act, the Assessing Officer has to conduct an enquiry into the factual situation as to the activities of the assessee society and arrive at a conclusion whether benefits can be extended or not in the light of the provisions under sub-section (4) of Section 80P. 33. In Chirakkal [384 IT....
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....ion (4) thereof, the Assessing Officer has to conduct an enquiry into the factual situation as to the activities of the assessee society and arrive at a conclusion whether benefits can be extended or not in the light of the provisions under sub-section (4) of Section 80P of the IT Act. In view of the law laid down by the Apex Court in Citizen Cooperative Society [397 ITR 1] the law laid down by the Division Bench Perinthalmanna [363 ITR 268] has to be affirmed and we do so. 35. In view of the law laid down by the Apex Court in Ace Multi Axes Systems' case (supra), since each assessment 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 rea....
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....erative Bank Ltd. (supra) was ruling the roost and the certificate issued by the Registrar of Co-operative Society terming the assessee as a primary agricultural credit society would be sufficient for grant of deduction u/s 80P of the I.T.Act. In the light of the dictum laid down by the Full Bench of the Hon'ble Kerala High Court in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT (supra), we are of the view that there should be fresh examination by the Assessing Officer as regards the nature of each loan disbursement and purpose for which it has been disbursed, i.e., whether it for agricultural purpose or not. The A.O. shall list out the instances where loans have disbursed for non-agricultural purposes etc. and accordingly c....