2017 (3) TMI 1822

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....see to be eligible for deduction u/s. 80P(2) (a)(i) of the Income Tax Act, 1961 (in short the Act). Ld. Counsel for the Revenue submitted that assessee did not pursue its principal object which was of providing agricultural credits to its members. As per Ld. DR, the Society, therefore, lost all the characteristics of a Primary Agricultural Credit Society. Relying on the judgment of Hon'ble Jurisdictional High Court in the case of Perithalmanna Service Co-operative Bank vs. ITO (363 ITR 268), Ld. AR submitted that a factual enquiry had to be conducted before concluding whether assessee was conducting business of a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank. As per Ld. DR, CIT(A) had ....

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....gment of Hon'ble Jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd. v. CIT (supra) is reproduced hereunder: "Appellant in these different appeals are indisputably societies registered under the Kerala Co-operative Societies Act, 1969 for short, KCS Act and the bye-laws of each of them, as made available to this court as part of the paper books, clearly shows that they have been classified as primary agricultural credit societies by the competent authority under the provisions of that Act. The Parliament, having defined the term 'cooperative Society' for the purposes of the BR Act with referent to, among other things, the registration of a society under any state law relating to co-operative societies ....

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....of any other co-operative society as member except may be, in accordance with the proviso to sub-section 2 of section 5(cciv) of the BR Act. The different orders of the Tribunal which are impeached in these appeals do not contain any finding of fact to the effect that the bye laws of any of the appellant or its classification by the competent authority under the KCS Act is anything different from what we have stated herein above. For this reason, it cannot but be held that the appellants are entitled to exemption from the provisions of section 80 P of the IT Act by virtue of sub-section 4 of that section. In this view of the matter, the appeals succeed." 5. Assessee having produced the certificate which clearly indicated its nature as a ....