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TMI Blog2018 (7) TMI 1990X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Tribunal which are impeached in these appeals do not contain any finding of fact to the effect that the bye- laws of any of the appellant or its classification by the competent authority under the KCS Act is anything different from what we have stated herein above. For this reason, it cannot but be held that the appellants are entitled to exemption from the provisions of section 80P by virtue of sub- section 4 of that sect; on. In view of the judgment of Chirakkal Service Co-op Bank Ltd. [ 2016 (4) TMI 826 - KERALA HIGH COURT] we hold that the assessee-Society is entitled to the benefit of deduction u/s. 80P(2) - Decided against revenue. - ITA No. 144/Coch/2018 - - - Dated:- 23-7-2018 - Shri Chandra Poojari, AM AND Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the judgment of the Jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd. (384 ITR 490) held that the assessee is entitled to deduction u/s. 80P(2) of the I.T. Act and directed the Assessing Officer to allow deduction u/s. 80P of the Act. 5. Aggrieved by the order of the CIT(A), the Revenue has filed the present appeal before us. The learned Departmental Representative relied on the grounds raised. None was present on behalf of the assessee, however, we proceed to dispose off the appeal on merits. 6. We have heard the learned DR and perused the material on record. Admittedly, the assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have to be understood as those which 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 havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the Tribunal erred in law in deciding 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 view of the judgment of the Hon'ble Jurisdictional High Court in the case of Chirakkal Service Co-op Bank Ltd. (supra), we hold that the assessee-Society is entitled to the benefit of deduction u/s. 80P(2) of the Act. It is ordered accordingly. 7. In the result, the appeal filed by the Revenue is dismissed. Order pronounced on this 23rd day of July, 2018. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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