TaxTMI 
TaxTMI 
2023 (6) TMI 1381
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....rief facts of the case is that the assessee is a Primary Rural Agricultural Co-operative Credit Society duly registered u/s 7(1) of Kerala Co-operative Society Act, 1969 (Act 21 of 1969) as per Registration No. K1119 dated 10.02.2012. The assessee filed nil income tax return u/s 139 of the Act. The same was processed u/s 143(1) of the Act denying deduction u/s 80P of the Act and the assessee's income was assessed at Rs.9,39,719/-. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) who was pleased to confirm the action of the AO/CPC u/s 143(1) of the Act by noting that even though assessee had claimed exemption of Rs.9,39,719/- under Schedule BP (business and profit), the assessee did not show any exempt income in the Schedule....
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....e impugned observation made by the Ld. CIT(A) that because assessee didn't file details of exempt income at Schedule EI, CPC denied deduction cannot be accepted. According to us, mere typographical error or an omission to make a claim in one of the columns, when assessee has claimed it in any other column in the same return, cannot be the sole ground on which the disallowance ought to have been made. Since we note that in the instant case, the assessee had in its return claimed the deduction of income u/s 80P(2) of the Act (supra), the CPC ought to have issued notice as contemplated by proviso to section 143(1)(a) of the Act. Without doing so, the adjustment could not have been made because the assessee anyway has claimed 80P(2)(a)(i) of th....
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....e paper books, clearly show that they have been classified as primary agricultural credit societies by the competent authority under the provisions of that Act. The Parliament, having defined the term 'co-operative society' for the purposes of the BR Act with reference to, among other things, the registration of a society under any State law relating to cooperative societies for the time being; it cannot but be taken that the purpose of the societies so registered under the State Law and its objects have to be understood as those which have been approved by the competent authority under such State law. This, we visualise as due reciprocative legislative exercise by the Parliament recognising the predominance of decisions rendered un....
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....-laws of any of the appellant or its classification by the competent authority under the KCS Act is anything different from what we have stated herein above. For this reason, it cannot but be held that the appellants are entitled to exemption from the provisions of section 80P of the IT Act by virtue of sub-section 4 of that section. In this view of the matter, the appeals succeed. 17. In the light of the aforesaid, we answer substantial question 'A' in favour of the appellants and hold that the Tribunal erred in law in deciding the issue regarding the entitlement of exemption under section 80P against the appellants. We hold that the primary agricultural credit societies registered as such under the KCS Act; and classified so, un....