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TMI Blog2020 (6) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... rsed for the purpose of agricultural purposes. Necessarily, the A.O. had to examine the details of each loan disbursement and determine the purpose for which the loans were disbursed, i.e., whether it is for agricultural purpose or non-agricultural purpose. In this case, such a detailed examination has not been conducted by the A.O. At the time of assessment, the judgment of the Hon ble jurisdictional High Court in the case of Chirakkal Service Cooperative Bank Ltd. [ 2016 (4) TMI 826 - KERALA HIGH COURT] was ruling the roost and the certificate issued by the Registrar of Co-operative Society terming the assessee as a primary agricultural credit society would be sufficient for grant of deduction u/s 80P. Dictum laid down in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is directed against the order of the CIT(A), dated 10.12.2019. The relevant assessment year is 2014-2015. 2. The solitary issue that is raised is whether the CIT(A) is justified in confirming the Assessing Officer s order in denying the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act. 3. The brief facts of the case are as follow: The assessee is a co-operative society registered under the Kerala Co-operative Societies Act, 1969. For the assessment year 2014-2015, return was e-filed on 29.03.2016 declaring total income at ₹ 43,790 after claiming deduction u/s 80P of the I.T.Act at ₹ 35,42,882. The assessment order was passed for assessment year 2014-2015, wherein the Assessing Officer disallowed the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment by wrongly treating the activities of the appellant as banking without appreciating the fact that the appellant have no licence to run banking business from the RBI. 2. The learned CIT(A) went wrong in approving the denial of deduction u/s 80P in the assessment without appreciating the fact that loan categorized under other heads also include loan advanced in agriculture sector in addition to loan advanced under agriculture gold loan. 3. The learned CIT(A) went wrong in approving the denial of deduction u/s 80P in the assessment without appreciating the fact that the appellant is a co-operative society engaged in carrying on the business of providing credit facilities to its members and, as such, the income derived fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative Society classifying the assessee-society as a co-operative 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. The finding of the Larger Bench of the Hon ble High Court reads as follows:- 33. In view of the law laid down by the Apex Court in Citizen Co-operative Society [397 ITR 1] it cannot be contended that, while considering the claim made by an assessee society for deduction under Section 80P of the IT Act, after the introduction of sub-section (4) thereof, the Assessing Officer has to extend the benefits available, merely looking at the class of the society as per the certificate of registration issued under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch expressed a divergent opinion, without noticing the law laid down in Antony Pattukulangara [2012 (3) KHC 726] and Perinthalmanna [363 ITR 268]. Moreover, the law laid down by the Division Bench in Chirakkal [384 ITR 490] is not good law, since, in view of the law laid down by the Apex Court in Citizen Co-operative Society [397 ITR 1], on a claim for deduction under Section 80P of the Income Tax Act, by reason of sub-section (4) thereof, 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 of the IT Act. In view of the law laid down by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Necessarily, the A.O. had to examine the details of each loan disbursement and determine the purpose for which the loans were disbursed, i.e., whether it is for agricultural purpose or non-agricultural purpose. In this case, such a detailed examination has not been conducted by the A.O. At the time of assessment, the judgment of the Hon ble jurisdictional High Court in the case of Chirakkal Service Cooperative Bank Ltd. (supra) was ruling the roost and the certificate issued by the Registrar of Co-operative Society terming the assessee as a primary agricultural credit society would be sufficient for grant of deduction u/s 80P of the I.T.Act. In the light of the dictum laid down by the Full Bench of the Hon ble Kerala High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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