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TMI Blog2017 (3) TMI 1822X X X X Extracts X X X X X X X X Extracts X X X X ..... ch clearly indicated its nature as a primary agricultural credit society, in our opinion, section 80P(4) could not have been invoked for denying the claim u/s. 80P(2)(a)(i) - We cannot find fault with the order of the CIT(A). As for the judgment of Hon ble Jurisdictional High Court in the case of Perithalmanna Service Co-operative Bank vs. CIT [ 2014 (6) TMI 184 - KERALA HIGH COURT ] relied on by Ld. DR, this was pronounced on 31st January, 2014 prior to the judgment of Hon ble Jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd. v. CIT [ 2016 (4) TMI 826 - KERALA HIGH COURT ] Further the said case dealt with the revisionary powers of the CIT u/s. 263 of the Act when the Assessing Officer had failed to make nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chirakkal Service Co-operative Bank Ltd. v. CIT (384 ITR 490). 3. Per contra, Ld. AR, in support of the order of CIT(A), submitted that reliance placed by the Ld. CIT(A) on the judgment of Hon ble Jurisdictional High Court in the case of Chirakkal Service Co-operative Bank Ltd. v. CIT (supra) while giving relief to the assessee was correct. 4. We have heard the rival submissions and perused the orders. It has not been disputed by the Revenue that during the course of original assessment proceedings, assessee had produced certificate from the competent authority under the provisions of Kerala Co-operative Societies Act, 1969 which classified it as a Primary Agricultural Credit Society. Assessing Officer held that assessee was in the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Act and having its area of operation confined to a village, panchayat or municipality. This is the consequence of the definition clause in section 2(oaa) of the KCS Act. The authorities under the IT Act cannot probe into any issue or such matter relating to such applicants. The position of law being as above with reference to the statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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