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TMI Blog2018 (10) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in providing credit facilities to its members, in course of its business had made investments with treasury, bank etc. and earned interest income - Held that:- In the instant case the assessee had made investments with sub-treasuries and banks in the course of its business of banking / providing credit facilities to its members. Therefore, it was entitled to deduction u/s 80P(2)(a)(i) in respect of interest income that was received on such investments. See Vaveru Co-operative Rural Bank Ltd. v CIT [2017 (4) TMI 663 - ANDHRA PRADESH HIGH COURT]. - ITA No.593/Coch/2017, ITA No.594/Coch/2017 - - - Dated:- 3-10-2018 - Shri Chandra Poojari, AM Shri George George K, JM For the Revenue : Smt. A.S.Bindhu For the Assessee : Sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of The Chirakkal Service Co-operative Bank Ltd. Ors. vs. CIT [(2016) 384 ITR 490 (Ker.)] held that the assessee is entitled to deduction u/s 80P(2) of the I.T.Act. As regards the interest received on in investments with the Pathanamthitta District Co-operative Bank Limited, the CIT(A) confirmed the view taken by the Assessing Officer. 4. Aggrieved by the order of the CIT(A), both the assessee as well as the Revenue has filed appeals before the Tribunal. We shall first adjudicate the Revenue s appeal. ITA No.594/Coch/2017 : Revenue s appeal : 5. In the above appeal, the only issue that was raised is whether the CIT(A) is justified in granting deduction u/s 80P(2) of the I.T.Act. 6. After hearing both sides, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 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 under the relevant State Law. In this view of the matter. all the appellants having been classified as primary agricultural credit societies by the competent authority under the KCS Act it has necessarily to be held that the principal object of such societies is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate 'of interest on such loans and advances to be at the rate fixed by the Registrar of co-operative societies under the KCS Ad and having its area of operation confined to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, under that Act including the appellants are entitled to such exemption. 6.2 In the instant case, the assessee is primary agricultural society. A certificate to the above effect is on record. In view of the judgment of the Hon'ble Jurisdictional High Court in the case of The Chirakkal Service Co-op Bank Ltd. Ors. (supra), we hold that the assessee-society is entitled to the benefit of deduction u/s. 80P of the Act. It is ordered accordingly. 7. In the result, the Revenue s appeal is dismissed. ITA No.593/Coch/2017 : Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside by the Hon ble High Court and was remitted to the Tribunal for de novo consideration. Subsequent to the remand, the Tribunal vide its order dated 23.03.2017 decided the issue in favour of the assessee by holding that interest income received on investments with sub-treasuries and co-operative banks was entitled to the benefit of deduction u/s 80P(2)(a)(i) of the I.T.Act. 8.4 The latest judgment of the Hon ble Telangana Andhra Pradesh High Court in the case of Vaveru Co-operative Rural Bank Ltd. v CIT (supra) had also decided on identical issue in favour of the assessees. The Hon ble High Court had held that co-operative societies engaged in providing credit facilities to its members, in course of its business had made inve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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