TaxTMI 
TaxTMI 
2018 (8) TMI 2060
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.... (ii) Whether the interest earned on investment made with sub-treasury and Banks is entitled for deduction u/s. 80P(2)(a)(i) of the I.T. Act. 3. Briefly stated the facts of the case are as follows: The assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. For the assessment year 2012-13, the assessee had filed return of income on 14.11.2013, declaring `Nil' income after claiming deduction amounting to Rs. 2,09,02,978 u/s. 80P(2) of the I.T. Act. The assessment u/s. 143(3) of the Act was completed vide order dated 19.03.2015 by denying the deduction u/s. 80P(2) of the I.T. Act. The reasoning of the Assessing Officer for denying the claim of deduction u/s. 80P of the Act was that the....
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....is squarely covered in favour of the assessee by the judgment of the Hon'ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. reported in 384 ITR 490. 6. We have heard the rival submissions and perused the material on record. Admittedly, the assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The Hon'ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. (supra) had held that a primary agricultural credit society, registered under the Kerala Cooperative Societies Act, 1969 is entitled to the benefit of deduction u/s. 80P(2). The Hon'ble High Court was considering the following substantial question of law: a) Whether on ....
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....societies by the competent authority under the KCS Act it has necessarily to be held that the principal object of such societies is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate 'of interest on such loans and advances to be at the rate fixed by the Registrar of co-operative societies under the KCS Ad and having its area of operation confined to a village, panchayat or a municipality. This is the consequence of the definition clause in section 2(oaa) of the KCS Act The authorities under the IT Act cannot probe into any issue or such matter relating to such applicants. 16. The position of law being as above with reference to the statutory provisions, the appellan....
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....e Jurisdictional High Court in the case of Chirakkal Service Co-op Bank Ltd. (supra), we hold that the assessee-Society is entitled to the benefit of deduction u/s. 80P(2) of the Act. It is ordered accordingly. 7. As regards the issue whether the assessee was entitled to deduction u/s 80P(2)(a)(i) of the I.T. Act for the interest received on investment made with sub-treasuries and banks, the Ld. AR relied on the following orders of the Tribunal wherein the issue was decided n favour of the assessee:- (i) Padne Service Co-operative Bank Limited v. ITO (ITA No.584/Coch/2017 - order dated 11.01.2018) (ii) Kizhathadiyoor Service Cooperative Bank (ITA No.525/Coch/2014 - order dated 20.07.2016) (iii) Mundakkayam Serv....