2024 (5) TMI 97

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....<br>Shri Sanjay Arora, Accountant Member And Smt. Kavitha Rajagopal, Judicial Member For the Appellant : Ms. Divya Ravindran, Advocate For the Respondent : Smt. J.M. Jamuna Devi, Sr. D.R. ORDER PER BENCH This is a set of seven Appeals by Assessee agitating the denial of deduction under section 80P(1) of the Income Tax Act, 1961 (the Act), claimed on the entirety of its profits and g....

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....ld become it's members, even if nominal, duly permitted by it's governing Act, i.e., the Kerala Co-operative Societies Act, 1969 (the Kerala Act), under which the assessee is registered as a Primary Agricultural Credit Society (PACS). This assumes relevance as this restriction by way of an amendment to s. 2(oa) of the Kerala Act by the Amendment Act of 1999, is applicable only to societies registe....

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..../4/2024), clarified that inasmuch as the Kerala Act permits a co-operative society to, through it's byelaws, accept deposits from, as well as to lend to, non-members (ss. 58 to 60), the assessee-society, even though registered as a PACS, may yet be in the business of banking, satisfying the conditions of banking as specified in section 5(b) of the Banking Regulation Act, 1949 (BRA). Two, given ....

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....e., including that referable to business with non-members. Further still, the assessee/s, satisfying the primary condition of s. 2(19) of the Act defining a society, is, thus, a cooperative society, a pre-requisite for deduction u/s. 80P(1). The resolution of the dispute as to whether the assessee is therefore eligible for deduction u/s. 80P(1) r/w s. 80P(2)(a)(i) and, where so, its extent, thus r....