TaxTMI 
TaxTMI 
2020 (10) TMI 417
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....ment years are 2009-2010, 2012-2013, 2014-2015, 2016-2017 & 2017-2018. 2. Since common issue is raised in the appeals, they were heard together and are being disposed of by this consolidate order. 3. Two issues are raised in these appeals - (i) whether the assessee is entitled to deduction u/s 80P(2)(a)(i) of the I.T.Act; and (ii) whether the interest income received on investments can be treated as 'income from business' and granted deduction u/s 80P(2)(d) 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 under consideration, the returns of income were filed, after claiming deduction u/s 80P ....
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....Co-operative Bank Ltd. v. CIT [ITA No.97/2016 order dated 19th March, 2019]. The assessee objected to the issuance of notices. However, the CIT(A) rejected the objections raised by the assessee and passed orders u/s 154 of the I.T.Act, disallowing the claim of the assessee u/s 80P(2) of the I.T.Act. 7. Aggrieved by the orders of the CIT(A), the assessee has filed these appeals before the Tribunal raising identical grounds, except variance in figures. Hence, we reproduce the grounds raised for assessment year 2009-2010, as under :- "1. The order of the Commissioner of Income Tax (Appeals), Thrissur u/s 250 of the I.T.Act, 1961 is opposed to law and contrary to the facts of the case and again equity and principles of natural justi....
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....To allow the deduction claimed u/s 80P(2)(d) of the Act which was not allowed by the first Appellate Authority to be allowed, and (c) To pass such other consequential order as the Hon.Income Tax Appellate Tribunal may deem fit to render justice." 8. The learned AR relied on the grounds raised. The learned Departmental Representative, on the other hand, strongly supported the orders of the Income-tax authorities. 9. 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-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 Socie....
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....of, 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 Division Bench held that the appellant societies having been classified as Primary Agricultural Credit Societies by the competent authority ....
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....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 Co-operative 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) thereof, if the assessee society ceases to be the specified class of societies for which the deduction is provided, ev....