TaxTMI 
TaxTMI 
2020 (10) TMI 1120
X X X X Extracts X X X X
X X X X Extracts X X X X
....sees are directed against the different orders of the CIT(A), Kozhikode. The relevant assessment years are 2009-10 and 2014-15. 2. Since common issue was raised in these appeals, they were heard together and are being disposed of by this common order. 3. The solitary issue that is raised is whether the CIT(A) is justified in confirming the Assessing Officer's orders 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 follows: The assessees are co- operative societies registered under the Kerala Co-operative Societies Act, 1969. For the assessment years 2009-10 and 2014-2015, returns were filed after claiming deduction u/s 80P of the I.T.Act. The assessment orders were passed f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e the Tribunal, raising following common grounds. We shall take the grounds as raised in ITA No.287/Coch/2020:- A. The order of the Appellate Authority to the extent objected to herein is absolutely illegal, arbitrary and unauthorized. B. The Appellate Authority went wrong in taking in myopic view of ratio of the judgment of Full Bench reported in (2019) 414ITR 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. 8OP. 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-op....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o not been let known to the Assessee. The Assessee has never got on opportunity to contest the reasons for reopening . Therefore the issue involved is the classification of the Assessee as a Cooperative Bank when there is a certification to the effect that the Assessee is a Primary Agricultural Credit Society. Therefore, applying the ratio of the judgment of the Hon'ble Supreme Court reported in (2003) 259 ITR 19, 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 Honourable Tribunal be pleased to allow the appeal. 6.1 The learned AR relied on the grounds raised. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ligibility shall be verified by the Assessing Officer for each of the assessment years. The finding of the Larger Bench of the Hon'ble High Court reads as follows:- "33. In view of the law laid down by the Apex Court in Citizen Co-operative Society [397 ITR 1] it cannot be contended 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....na [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) 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 26....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rpose for which the loans were disbursed, i.e., whether it is for agricultural purpose or non-agricultural purpose. In these cases, such a detailed examination has not been conducted by the A.O. At the time of assessment, the judgment of the Hon'ble jurisdictional High Court in the case of Chirakkal Service Cooperative Bank Ltd. (supra) was ruling the roost and the certificates issued by the Registrar of Co-operative Society terming the assessees 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 ther....