TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 624
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....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 year 2014-2015, return was filed after claiming deduction u/s 80P of the I.T.Act. The assessment order was passed for assessment year 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.Act was that the assessee was essentially 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 deduction u/s 80P of the I.T.Act. 4. Aggrieved by th....
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....t evaluation of the objectives or even otherwise the objects are of agricultural nature and not otherwise. The Kerala every year and it has not been objected by the Kerala Co-Operative Department warranting to the cancellation or suspension of its registration. 3. The learned Commissioner of Income Tax Appeals further failed to see that, As per Section 2(1) of KCS Act, a member includes a nominal or associate member. Hence, for the cooperative societies registered under KCS Act, transactions with nominal members is not in violation of the KCS Act. 4. The learned Commissioner of Income Tax Appeals further failed to see that, Assessee is a primary agricultural credit society as defined and registered with the Registrar of Co-operative S....
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....iding that, the assessee is become an AOP doing banking business to stating that, the assessee had violated its charter for it was registered. The Co-Operative department being the registering authority had no where objected that, the assessee had violated the charter for which it had registered. 7. It is submitted that without prejudice to the above grounds other grounds may be allowed at the time of hearing. 5.1 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. 6. 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-oper....
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....hat, 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 ITR 490] the ....
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....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 reason of sub-section (4) ....
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....e 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 conclude that the assessee's activities ....