KOONAMMOOCHI PEOPLES SERVICE CO OP BANK LIMITED NO 603,KOONAMOOCHI vs. ITO,WARD 2(1), GURUVAYUR

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ITA 719/COCH/2025Status: DisposedITAT Cochin07 November 2025AY 2020-2021Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI MANU KUMAR GIRI (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the appellant, being a primary agricultural society that does not hold a banking license and operates on the lines of a co-operative society, cannot be classified as a co-operative bank. Therefore, it is not hit by the provisions of section 80P(4) of the Act.

What were the facts?

The assessee, a primary agricultural credit co-operative society, filed a return of income declaring Nil income. The assessment was completed by the AO, and the CIT(A) confirmed the AO's action. The assessee appealed to the Tribunal.

What were the issues?

Whether the appellant co-operative society is eligible to claim deduction under section 80P(2)(a)(i) of the Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 80P,Section 80P(4),Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI MANU KUMAR GIRI, JM

For Appellant: Shri Ramdas, CA
For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 06.11.2025Pronounced: 07.11.2025

O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (NFAC) dated 17.05.2025 for Assessment Year (AY) 2020-21.

2.

Brief facts of the case are that the appellant is primary agricultural society. The return of income for AY 2020-21 was filed on 13.01.2021 declaring Nil income. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(1), Guruvayoor (hereinafter called "the AO") vide order

3.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

4.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

5.

The learned A.R. submits that the appellant is a primary agricultural credit co-operative society. It cannot be classified as a co-operative bank for the reason that it does not enjoy any banking licence and the ratio of the decision of the Hon'ble Apex Court in the case Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC) is clearly applicable to the facts of the case.

6.

On the other hand the learned Sr. DR had not opposed the above submission.

7.

We have heard the rival contentions and perused the material available on record. The issue that arose for our consideration is whether the appellant co-operative society is eligible to claim deduction u/s. 80P(2)(a)(i) of the Act or not. The undisputed facts of the case are that the appellant is a co-operative society formed with the object of accepting deposits from members and providing credit facilities to the members. It is classified as a primary agricultural society. It does not enjoy any banking licence to carry on the Koonammoochi Peopes Service Co-op. Bank Ltd. business of banking from Reserve Bank of India. Therefore, in the given circumstances it cannot be classified as a co-operative bank and not hit by provisions of subsection (4) of section 80P of the Act. The ratio of the decision of the Hon'ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd. (supra) is clearly applicable to the facts of the case. In the circumstances, we direct the AO to allow the claim for deduction u/s. 80P of the Act.

8.

In the result, the appeal filed by the assessee stands allowed.

Order pronounced in the open court on 7th November, 2025.

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