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TMI Blog2023 (4) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... ex Court, referred supra. Therefore, the issue raised on merits is restored to the files of the AO - we remit the issue back to the AO with similar directions. Decided against revenue. - ITA No.849/Coch/2022 - - - Dated:- 8-3-2023 - Shri George George K., Judicial Member And Ms. Padmavathy S, Accountant Member For the Assessee : Shri. Anil D Nair, Advocate For the Revenue : Smt. J M Jamuna Devi, Sr DR ORDER PER PADMAVATHY S, ACCOUNTANT MEMBER This appeal is against the order of CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 25.07.2022, for the Assessment Year 2018-19. 2. The assessee raised the following grounds 1. The order of the learned CIT [A] upholding the Order of the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3A)/(3B) and proceedings under section 144B should have been initiated, failing which the order becomes invalid. 7. It is further contended that the order under section 144B is challenged on the ground that the procedure laid down under the said provision has not been followed while framing the assessment and thus, there is violation of provision of law and the same has been empathetically denied. 8. It is a statutory requirement, more particularly when any assessment order is to be made which is likely to be prejudicial to the interest of the assessee, the NFAC would have served upon the assessee the draft assessment order. 9. The assessment was completed without giving proper opportunity to your appellant. The appellant soug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the issue is covered by the decision of coordinate bench in assessee s own case for AY 2016-17 2017-18 (ITA No.664 665/Coch/2022) where the Hon ble Tribunal has remitted the issue back to the AO. The ld AR prayed for a similar direction for the year under consideration also. 5. The ld DR relied on the orders of lower authorities. 6. We heard the parties and perused the material on record. We notice that the coordinate bench in assessee s own case has considered the similar issue and held that 5. Further, it is noted that in the case of Ms. The Kizhathadiyoor Service Co-operative Bank Ltd. in ITA No.140/Coch/2018 dated 23.7.2018, the Tribunal held as under:- 7. The only other ground in ITA No.140/Coch/2018 is with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the condition of other heads of exemption are not satisfied. A reading of the provisions of Section 80-P of the Act would indicate the manner in which the exemption under the said provisions is sought to be extended. Whenever the legislature wanted to restrict the exemption to a primary cooperative society, it was so made clear as is evident from clause (f) with reference to a milk cooperative society that a primary society engaged in supplying milk is entitled to such exemption while denying the same to a federal milk cooperative society. 22. With the insertion of sub-section (4) by the Finance Act, 2006, which is in the nature of a proviso to the aforesaid provision, it is made clear that such a deduction shall not be admissible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Ltd. and Ors. (supra) has construed section 80P widely and liberally, holding that if a society were to avail of several heads of deduction, and if it fell within any one head of deduction, it would be free from tax notwithstanding that the conditions of another head of deduction are not satisfied; (IV) This is for the reason that when the legislature wanted to restrict the deduction to a particular type of cooperative society, such as is evident from section 80P(2)(b) qua milk co-operative societies, the legislature expressly says so - which is not the case with section 80P(2)(a)(i); (V) That section 80P(4) is in the nature of a proviso to the main provision contained in section 80P(1) and (2). This proviso specifically exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at they may also be giving loans to their members which are not related to agriculture. Also, in case it is found that there are instances of loans being given to non-members, profits attributable to such loans obviously cannot be deducted. (para 45) It must also be mentioned here that unlike the Andhra Act that Citizen Cooperative Society Ltd. (supra) considered, 'nominal members' are 'members' as defined under the Kerala Act. (para 46) Considering the definition of 'member' under the Kerala Act, loans given to such nominal members would qualify for the purpose of deduction under section 80P(2) (a)(i). Unlike the facts in Citizen Cooperative Society Ltd. (supra), the Kerala Act expressly permits loans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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