TaxTMI 
TaxTMI 
2022 (6) TMI 1009
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....020 are time barred by 42 days. As per Form 36 filed by the assessee before us, it is noted that the order of CIT(A) dated 27.02.2020 was received by the assessee only on 05.03.2020. The appeal is to be filed on or before 04.05.2020. The ld.counsel for the assessee at bar stated that it is the period during which lockdown was imposed and COVID period started and the Hon'ble Supreme Court in Miscellaneous Application No.665 of 2021 vide order dated 23.03.2020 has given directions that the delay are to be condoned during this period 15.03.2020 to 14.03.2021 and they have condoned the delay up to 28.02.2022 in Miscellaneous Application No.21 of 2022 vide order dated 10.01.2022. In term of the directions of Hon'ble Supreme Court, we condone the delay and admit the appeals. 3. The only issue in these five appeals of assessee is as regards to the order of CIT(A) confirming the denial of claim of deduction u/s.80P(2)(a)(i) of the Act. The assessee has raised identically worded grounds in all the appeals and hence, we take the facts and grounds from ITA No.179/CHNY/2019 for the assessment year 2009-10. The relevant grounds raised by assessee reads as under:- 2. The CIT(A) erred....
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....r of ITAT are undisputed, which are given in page 1 of the order giving effect to the order of ITAT by the AO. The AO while passing order u/s.154 r.w.s. 254 of the Act giving effect to the order of ITAT noted that whether the assessee is entitled to claim deduction u/s.80P(2)(a)(i) of the Act. He noted that the assessee is a registered Co-operative Society under the Cooperative Societies Act, Government of Pondicherry with Registration No.96 dated 25.09.1959. He admitted that the assessee is a Co-operative Society but as regards to the condition that assessee Co-operative Society should have transacted the business with its member and he classified three categories of members viz., Class A, B & C. He noted three classes as under:- Class A member: Also known as first category member, who can avail advances in the form of KCC (Kisaan credit card) loan and they have a say in the management of society as they have voting rights. Class 'B' member : The Government of Puducherry belongs to this class. Class 'C' member : This class of members are allowed to take membership for the limited and specific purpose of availing jewel loan. Loan against deposits and loan....
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....rative Bank Ltd., supra¸and Hon'ble Supreme Court has laid down certain principles which are culled out from the judgment as under:- (I) That section 80P of the IT Act is a benevolent provision, which was enacted by Parliament in order to encourage and promote the growth of the co-operative sector generally in the economic life of the country and must, therefore, be read liberally and in favour of the assessee; (II) That once the assessee is entitled to avail of deduction, the entire amount of profits and gains of business that are attributable to any one or more activities mentioned in subsection (2) of section 80P must be given by way of deduction; (III) That this Court in Kerala State Cooperative Marketing Federation Ltd. and Ors. (supra) has construed section 80P widely and liberally, holding that if a society were to avail of several heads of deduction, and if it fell within any one head of deduction, it would be free from tax notwithstanding that the conditions of another head of deduction are not satisfied; (IV) This is for the reason that when the legislature wanted to restrict the deduction to a particular type of co-operative soci....
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....llegal, unlike the facts in Citizen Cooperative Society Ltd., supra. 6.3 In view of the above decision of Hon'ble Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd., we noted that the assessee is primary agricultural co-operative credit society and it transacts business only with members whether 'A' class, 'B' class or 'C' class as noted by the AO. The Pondicherry Co-operative Societies Act, 1972 is a pari-materia to the Co-operative Societies Acts of Tamil Nadu State and Andhra Pradesh. As referred by ld.counsel for the assessee, the decision of Hon'ble Madras High Court in the case of S 1911 AN Udhur PACCS vs. PCIT in T.C.A. Nos.170 & 171 of 2020 dated 17.07.2020, after taking note of definition of 'member' under Tamil Nadu Co-operative Societies Act, 1983 held that this issue has been dealt with in the case of PCIT vs. S1308 Ammapet Primary Agricultural Cooperative Bank Ltd., Ammapet in T.C.A. No.882 & 891 of 2018 dated 06.12.2018. The Hon'ble Madras High Court in para 5 has extracted the relevant portion of judgment of S1308 Ammapet Primary Agricultural Cooperative Bank Ltd., as under:- "5. The case on hand is also an identical matter. The only....
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.... was relied upon by the Revenue before the Tribunal, which, in paragraph 6.1 of its order dated 28.2.2018 for the assessment year 2014-15, extracted the operative portion of that judgment. In that case, the Hon'ble Supreme Court found that the society carried on certain activities, which were contrary to the provisions of the Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995 and that they accepted deposits from third parties, who were not members in the real sense and were using those deposits to advance gold loans. Therefore, the Hon'ble Supreme Court pointed out that such an activity of the said society was that of a finance business and could not be termed as a cooperative society and that the loans, which were disbursed, were without the approval from the Registrar of Mutually Aided Cooperative Societies, Ranga Reddy District. The Hon'ble Supreme Court found that the said society was not entitled to deduction under Section 80P of the Act. 16. It is noteworthy to point out that the Hon'ble Supreme Court in the decision in the case of Citizen Cooperative Society Limited also observed that in the light of insertion of Sub-Section (4) to Section 80P of the Act ....