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TMI Blog2019 (5) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... y into the factual situation as to the activities of the assessee society to determine the eligibility of deduction u/s 80P of the I.T.Act. It was held by the Hon ble High Court that the Assessing Officer is not bound by the registration certificate issued by the Registrar of Kerala Cooperative Society classifying the assessee-society as a cooperative society. The Hon ble High Court held that each assessment year is separate and eligibility shall be verified by the Assessing Officer for each of the assessment years. Thus the issue of deduction u/s 80P(2)(a)(i) is restored to the Assessing Officer. The Assessing Officer shall examine the activities of the assessee and determine whether its activities are in compliance with the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) allowed the claim of the assessee by following the judgment of the Hon ble jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd.(384 ITR 490) . The CIT(A) held that the assessee being registered as a primary agricultural credit society would be sufficient to grant the benefit of deduction u/s 80P(2) of the I.T.Act going by the dictum laid down by the judgment of the Hon ble jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd. (supra). 5. Aggrieved by the order of the CIT(A), the Revenue has filed the present appeal before the Tribunal. The learned Departmental Representative relied on the grounds. The learned Counsel for the assessee, on the other hand, relied o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ordinary Loans/ Gold Loans etc. ₹ 17,96,66,722/- 55.55% Grand Total ₹ 32,34,61,441/- This was clearly considered by the first appellate authority while deciding the case in favour of the assessee. In view of the above matter this Bench of the Tribunal may please uphold the order of the CIT (appeals) Thrissur and dismiss the second appeal of the department. ' 6. We have heard the rival submissions and perused the material on record. The Assessing Officer denied deduction u/s 80P of the I.T.Act to the assessee by treating that its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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 sub-section (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 loans and adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn 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. 6.1 In view of the dictum laid down by the Full Bench of the Hon ble High Court, the issue of deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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