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TMI Blog2020 (9) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... ese appeals, hence, they were heard together and are being disposed of by this consolidated order. 3. The solitary issue that is raised is whether the CIT(A) is justified in confirming the Assessing Officers order in denying the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act. 4. 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 years under consideration, returns were filed after claiming deduction u/s 80P of the I.T.Act. The assessment orders were passed for assessment years under consideration, wherein the Assessing Officer disallowed the claim of deduction u/s 80P of the I.T.Act. The reasoning of the Assessing Officer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicial to the interests of the appellant is opposed to law, facts and circumstances of the case. 2. It is submitted that the appellant is clearly eligible for deduction u/s 80P(2)(a)(i) of the Income Tax Act 1961 and the observation or finding to the contrary by the lower authorities are illegal and unsustainable. It is further submitted that on a harmonious and combined reading of all the applicable provisions of law in this connection along with the scheme of the Act, the appellant is clearly eligible for the deduction. A detailed note in support of this ground shall be filed on or before the hearing of this appeal. 3. It is submitted that the denial of deduction u/s 80P( 4) of the Act by the lower authorities is illegal and unsustai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant as a Cooperative Bank then all the other deductions and reliefs provided to the said banks should also be made available to the appellant including the deduction u/s 36(1)(viia). 9. The appellant is eligible for complete exemption from tax on application of the doctrine of mutuality. 10. The status of the appellant as AOP as fixed by the AO is not correct with the result that the order passed in the status of AOP is liable to be quashed. 11. It is submitted that the Special Leave Petition challenging the full bench decision of the Hon'ble Kerala High court in Mavilayil case ITA No: 97/2016 has been admitted by the Hon'ble Supreme Court and the matter is pending. 12. It is submitted that the Chirakkal case is applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... versed the above findings of the Hon'ble Kerala High Court in the case of Chirakkal Service Co-operative Cooperative Bank Ltd. v. CIT (supra). The Larger Bench of the Hon'ble Kerala High Court in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT (supra) held that the Assessing Officer has to conduct an inquiry 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 Co-operative Society classifying the assessee-society as a co-operative society. The Hon'ble High Court held that each assessment year is separ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocieties under the KCS Act and having its area of operation confined to a Village, Panchayat or a Municipality and as such, they are entitled for the benefit of sub-section (4) of Section 80P of the IT Act to ease themselves out from the coverage of Section 80P and that, the authorities under the IT Act cannot probe into any issues or such matters relating to such societies and that, Primary Agricultural Credit Societies registered as such under the KCS Act and classified so, under the Act, including the appellants are entitled to such exemption. 34. In Chirakkal [384 ITR 490] the Division Bench expressed a divergent opinion, without noticing the law laid down in Antony Pattukulangara [2012 (3) KHC 726] and Perinthalmanna [363 ITR 268]. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded that the assessee cannot be treated as co-operative society. The Assessing Officer after perusing the narration of the loan extracts in the statutory audit report for assessment years under consideration, came to the conclusion that out of the total loan disbursement, only a minuscule portion has been advanced for agricultural purposes. We are of the view that the narration in loan extracts in the audit reports by itself may not conclusive to prove whether loan is a agricultural loan or a non-agricultural loan. The gold loans may or may not be disbursed 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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