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TMI Blog2018 (2) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... see is primary agricultural credit society and has produced a certificate of Registrar of Co-operative Societies under Kerala Co-operative Societies Act, 1969 to the above effect. Since the Hon’ble Kerala High Court has categorically held that a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969 is entitled to the benefit of deduction u/s. 80P(2) of the Act, CIT(A) is justified in directing the Assessing Officer to grant the benefit of deduction u/s. 80P(2) - Decided in favour of assessee. - ITA No.507/Coch/2016 - - - Dated:- 14-2-2018 - Shri Chandra Poojari, AM And Shri George George K, JM For The Appellant : Sri. A.Dhanaraj, Sr.DR For The Respondent : Sri. Jojo, Chartered Accounta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g grounds 1 to 3 above, after holding that the appellant is a Primary Agricultural Credit Society as deductible u/s. 80P should have directed examination and restriction of deduction to income specified in section 80P(2)(a) to (f) subject to specified conditions. 6. For these and other grounds that may be advanced at the time of hearing the order of the learned Commissioner of Appeals, Trivandrum on the above points may be set aside and that of the Assessing Officer restored. 3. Brief facts of the case are as follow:- 3.1 The assessee is a primary agricultural credit society registered under the Kerala Co-operative Societies Act, 1969. For the assessment year 2013-2014, return of income was filed on 31.03.2015 declaring nil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of Chirakkal Service Cooperative Bank Ltd vs. CIT reported in 384 ITR 490, has held that the primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969, is entitled to the benefit of deduction u/s 80P(2). The Hon ble High Court was considering the following substantial question of law: a) Whether on the facts and in the circumstances of the case under consideration, the Tribunal is correct in law in deciding against the assessee, the issue regarding entitlement for exemption under section 80P, ignoring the fact that the assessee is a primary agricultural credit society? 6.1 In considering the above question of law, the Hon ble High Court rendered the following findings: 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of operation confined to a village, panchayat or a municipality. This is the consequence of the definition clause in section 2(oaa) of the KCS Act. The authorities under the IT Act cannot probe into any issue or such matter relating to such applicants. 16. The position of 1aw being as above with reference to the statutory provisions, the appellants had shown to the authorities and the Tribunal that they are primary agricultural credit societies in terms of clause (cciv) of section 5 of the BR Act, having regard to the primary object or principal business of each of the appellants. It is also clear from the materials on record that the bye-laws of each of the appellants do . not permit admission of any other co-operative society as me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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