9911796707
TMI Blog2019 (2) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 80P(2)(a)(i) of the I.T.Act? 3. Briefly stated the facts of the case are as follows: The assessee is primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. For the assessment year under consideration, the assessee had filed return of income after claiming deduction u/s. 80P of the I.T. Act. The assessment was completed by denying the deduction u/s. 80P of the I.T. Act. The reasoning of the Assessing Officer's for denying the claim of deduction u/s. 80P of the Act was that the assessee was primarily engaged in the business of banking and therefore, in view of the provisions of section 80P(4) of the I.T. Act which was inserted with effect from 01.04.2007, the assessee was not entitled to deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Appellants in these different appeals are indisputably societies registered under the Kerala cooperative societies Act 1969, for short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CS Act The authorities under the IT Act cannot probe into any issue or such matter relating to such applicants. 16. The position of law 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 member, except may be, in accordance with the proviso to sub-clause 2 of section 5(cciv) of the BR Act. The different orders of the Tribunal which are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Bank Ltd. [ITA No.474/Coch/2017 order dated 08.03.2018]. 7. The Revenue has also raised grounds relating to the validity of certificate issued under the Kerala Co-operative Societies Act, 1969, categorizing the assessee as a Primary Agricultural Credit Society (PACS). According to the Revenue, the certificate has been issued by the Assistant Registrar of Co-operative Societies, stating that the assessee is a PACS and the Assistant Registrar of Co-operative Societies is not a competent authority to classify the assessee as such. The issues raised in grounds No.4 to 10 regarding the validity of certificate in brief are as follows:- (i) As per Section 7 of KCS Act, Competent authority to issue the certificate is Registrar. (ii) As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued Notification No.255/69/AD dated 28.06.1969. As per this Notification, Joint Registrar can exercise all the powers of Registrar. Section 8(2) was inserted in KCS Act w.e.f. 14.02.2013 and Rule 4A and Form 3A were inserted w.e.f. 26.11.2014. As per section 8(2), where the Registrar is satisfied that the original certificate is irrecoverably lost, a certificate stating the registration number and date of registration can be issued in Form 3A. A certificate in Form 3A stating that the assessee is a PACS was submitted before the Income-tax authorities and a copy of the same is placed on record. The certificate in Form 3A is signed and sealed by the Joint Registrar, who is empowered by the Notification issued by the Kerala Government (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
