TaxTMI 
TaxTMI 
2021 (12) TMI 103
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.... NO.101/KSD/CIT/CLT/2013-14 DT.16.02.2015 ITA NO.265/COCH/2015 DTD 26.09.2017 44/2019 2 2011-12; dtd.19.02.2014 ITA NO.367/KSD/CIT/CLT/2013-14 DT.16.02.2015 ITA NO.267/COCH/2015 DTD 26.09.2017 57/2019 3 2010-11; dtd.08.03.2013 ITA NO.71/KSD/CIT/CLT/2013-14 DT.16.02.2015 ITA NO.266/COCH/2015 DTD 26.09.2017 58/2019 2. The assessee is a registered Co-operative Society formed in the year 2001. The Society is formed for enabling financial and social welfare of toddy tappers/workers; for tapping and selling toddy within Hosdurg jurisdiction. The assessee claimed exemption under Section 80P(2)(a)(vi) of the Act. 2.1 ITA No.44/2019 is treated as representative appeal for considering and disposing of the substantial questions raised by the assessee in the set of appeals since the question are same. The issues for adjudication substantially arise under Section 80P(2) of the Income Tax Act 1961 (for short 'the Act'). I.T.A. No.44/2019 Substantial Question Nos.1 & 2 3. Substantial question nos.....
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....e grown by its members, xxx xxx xxx" 4.2 A Division Bench of High Court of Telangana and Andhra Pradesh in Vavveru Co-operative Rural Bank Ltd v. Chief Commissioner of Income Tax [2017] 396 ITR 371 (T&AP), has succinctly tabulated the Societies and the benefits to which each one of the category of Societies is entitled to, would be benefiting in our narrative to excerpt the relevant portion as under: "28. We have carefully considered the above submissions. Before considering the effect of the various decisions cited on both sides, we think it would be ideal to look at the statutory prescription in pure and simple form. As we have indicated earlier, Section 80P(2) is actually divided into six parts, categorised under clauses (a), (b), (c), (d), (e), and (f). Each one of these clauses deal with different types of co-operative societies engaged in different types of activities. The benefit made available to each one of them is also different from the other. Therefore, it may be useful to present a tabular form, the six categories of co-operative societies covered by clause (a) to (f) and the nature and extent of the benefit available to each one of them, as follow....
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....r, where the gross total income does not exceed Rs. 20,000/- (twenty thousand rupees) The income by way of interest on securities and the income from house property chargeable under Section 22. 29. From the Tabular form presented above, it may be clear that the deductions available under Clauses (a) to (c) are activity-based. The deduction available under Clauses (d) and (e) are investment-based and the deduction under Clause (f) is institution-based. To put it differently, (A) to be eligible for deduction under Clause (a), the claim should relate to the profits and gains of business attributable to anyone or more of the activities listed in Clause (a), (B) to be eligible for deduction under Clause (b), the society should be a primary society engaged in supplying milk, oilseeds, fruits, etc. to named institutions, such as, Government, Local Authority, Federal Co-operative Society, or Government Company, (C) to be eligible for deduction under Clause (c), the institution must be engaged in activities other than those covered by Clauses (a) and (b) subject to the further condition that such profits and gains should not ex....
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....r examining the question of law independently, the possibility of treading into pure and simple facts cannot be obliterated. Which, for informed reasons in law, we do not want to undertake. Therefore, the question is answered, to the extent indicated above, in favour of the assessee and against the Revenue. Substantial question no.3 is remitted to Tribunal for consideration and disposal, in accordance with law. Substantial Question Nos.4 and 5 7. Substantial question nos. 4 and 5 read thus: "4. Whether, the Tribunal is right in law and facts of the case in not remanding the matter back to the assessing officer to consider whether the appellant society falls in any other category as contemplated under section 80 P(2) (a) and eligible for deduction under 80 P of the Act.? 5. Whether the Tribunal is right in law and facts and circumstance of the case in not considering the issue on the finding of the assessing officer that the bye-laws of the appellant does not restrict the voting rights and therefore not eligible for deduction under section 80 P (2) (a) of the Act?. 7.1 In our view and also from the tenor of arguments made in this behalf, this Court reco....