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TMI Blog2019 (5) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... operative society functioning under the Kerala Co-operative Societies Act, 1969 and grant deduction u/s 80P(2) of the I.T.Act in accordance with law. - Appeals filed by the assessee are allowed for statistical purposes - ITA No.66/Coch/2019, ITA No.156/Coch/2019 - - - Dated:- 16-5-2019 - Shri Chandra Poojari, AM And Shri George George K, JM For the Appellant : Sri.Rajendran R For the Respondent : Smt.A.S.Bindhu, Sr.DR ORDER PER GEORGE GEORGE K, JM These appeals at the instance of the assessee are directed against the consolidated order of the CIT(A) dated 24.10.2018. The relevant assessment years are 2010-2011 and 2011-2012. Since common issue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the acknowledgement evidencing the filing of the returns of income was placed on record. assessee has also relied on the judgment of the Hon ble jurisdictional High Court in the case of Chirakkal Service Cooperative Bank Ltd.(384 ITR 490) and submitted that having filed the returns of income, the assessee s claim of deduction u/s 80P(2) of the I.T.Act should be granted. 5. The learned Departmental Representative, on the other hand, strongly relied on the orders passed by the Income-tax authorities. 6. We have heard the learned Departmental Representative and perused the material on record. The assessee had submitted the returns of income filed on 07.12.2018 and copy of the acknowledgement evidencing the filin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition against allowing deduction is worded in quite similar terms in sections 80A(5) and 80AC, of which section 80A(5) is a provision inserted through the Finance Act 33/2009 with effect from 1.4.2013 after the insertion of section 80AC as per the Finance Act of 2006 with effect from 1.4.2006. This clearly evidences the legislative intendiment that the inhibition contained in subsection 5 of section 80A would operate by itself. In cases where returns have been filed, the question of exemptions or deductions referable to section 80P would definitely have to be considered and granted if eligible. 20. Here, questions would arise as to whether belated returns filed beyond the period stipulated under section 139(1) or section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee beyond the period stipulated under section 139(1) or 139(4) or under section 142(1) or section 148 can also be accepted and acted upon provided further proceedings in relation to such assessments are pending in the statutory hierarchy of adjudication in terms of the provisions of the IT Act. In all such situations, it cannot be treated that a return filed at any stage of such proceedings could be treated as non est in law and invalid for the purpose of deciding exemption under section 80P of the IT Act. We thus answer substantial questions of law Band C formulated and enumerated above. 6.2 In view of the Hon ble High Court judgment in the case of Chirakkal Service Co-operative Bank Ltd. (supra), the return of income th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Central or State Co-operative Societies Act and the Rules made thereunder. On such a claim for deduction under Section 80P of the IT Act, the Assessing Officer has to conduct an enquiry into the factual situation as to the activities of the assessee society and arrive at a conclusion whether benefits can be extended or not in the light of the provisions under subsection (4) of Section 80P. 33. In Chirakkal [384 ITR 490] the Division Bench held that the appellant societies 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 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e law laid down by the Apex Court in Citizen Co-operative Society [397 ITR 1] the law laid down by the Division Bench Perinthalmanna [363 ITR 268] has to be affirmed and we do so. 35. In view of the law laid down by the Apex Court in Ace Multi Axes Systems case (supra), since each assessment year is a separate unit, the intention of the legislature is in no manner defeated by not allowing deduction under Section 80P of the IT Act, by reason of sub-section (4) thereof, if the assessee society ceases to be the specified class of societies for which the deduction is provided, even if it was eligible in the initial years. 7.1 In view of the dictum laid down by the Full Bench of the Hon ble High Court, the issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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