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TMI Blog2018 (7) TMI 2302X X X X Extracts X X X X X X X X Extracts X X X X ..... mon order. 2. In the Revenue's appeal in ITA No. 139/Coch/2018, though as many as five grounds are raised, all the grounds relate to the issue whether the CIT(A) was justified in directing the Assessing Officer to grant deduction u/s. 80P(2)(a)(i) of the I.T. Act to the assessee-Society. In the Revenue's appeal in ITA No. 140/Coch/2015, apart from the ground raised in ITA No.139/Coch/2015, the Revenue has raised one more ground relating to eligibility of deduction u/s. 80P(2)(a)(i) on the interest earned on investment made with sub-treasuries and bank deposits. 3. Briefly stated the facts of the case are as follows: The assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he I.T. Act and directed the Assessing Officer to allow deduction u/s. 80P of the Act. For AY 2012-13, as regards interest earned on investment with sub-treasuries and Banks, the CIT(A) followed the order of ITAT in assessee's own case for AY 2009-10 in ITA No. 525/Coch/2014 dated 20/07/2016. 5. Aggrieved by the orders of the Ld. CIT(A), the Revenue has filed the present appeals before us. The Ld. DR relied on the grounds raised. The Ld. AR on the other hand submitted that the issue in question whether the assessee is entitled to the benefit of deduction u/s. 80P(2) of the Act is squarely covered in favour of the assessee by the judgment of the Hon'ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. reported in 384 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ety under any State law relating to co-operative societies for the time being; it cannot but be taken that the purpose of the societies so registered under the State Law and its objects 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 sbeen 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of that sect; on. In this view of the matter, the appeals succeed. 17. In the light of the aforesaid, we answer substantia1 question 'A' in favour of the appellants and hold 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 assesseeSociety is entitled to the benefit of deduction u/s. 80P(2) of the Act for both the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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