TaxTMI 
TaxTMI 
2025 (6) TMI 979
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.... appeals are identical and pertain to the same assessee, therefore, these appeals have been heard together and are being disposed of by this consolidated order. First we take up ITA No.21/Coch/2025 for narration of facts. 2. ITA No.21/Coch/2025 - Brief Facts of the case are that the assessee is a primary agricultural credit society and is registered under Kerala Co-operative Societies Act 1969. The assessee operates in the rural area of Kallkkodu, Kollam, Kerala and its principal business is to provide credit facilities exclusively to its members who are primarily agriculturists. For the relevant assessment year, the assessee filed return declaring taxable income as Nil after claiming deduction u/s 80P(2)(a)(i) of the Act. The case of the ....
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....ected the Revenue's identical stand as under: - "12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several subsections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income of the assessee is considered while computing the income of the assessee. For getting deduction, in our considered view, the assessee must also establish that the interest income earned by the assessee is from a Co-operative Society. As a matter of fact, in the case on hand, there is no dispute that it is not from a Co-operative Society registered under Kerala Co-operative Societies Act. The interest income earned from District Co-o....
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.... Society Ltd. in ITA No. 63 of 2019, wherein it was held as under: - "The question that arises therefore is whether, merely because the assessee chooses to deposit its surplus profit in a permitted bank or financial institution, and earns interest on such deposits, such interest would cease to form part of its profits and gains attributable to its business of providing credit facilities to its members? In our view that question must be answered in the negative, since we cannot accept the contention of the Revenue that the interest earned on those deposits loses its character as profits/gains attributable to the main business of the assessee. It is not as though the assessee in the instant case had used the surplus amount (the profit earne....