THE KODUVAYUR SERVICE COOPERATIVE BANK LTD,PALAKKAD vs. ITO, WARD 2, PALAKKAD

Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is classified as a primary agricultural credit co- operative society. It is engaged in the business of accepting deposits Koduvayur Service Co-op. Bank Ltd. from members and providing credit facilities to members. The appellant filed the return of income for AY 2017-18 on 28.02.2017 declaring Nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward -5, Palakkad (hereinafter called "the AO") vide order dated 25.12.2019 passed u/s. 143(3) of the Act at a total income of Rs. 80,15,190/-. While doing so, the AO had denied the claim for deduction u/s. 80P by holding that the loans issued for agricultural purposes is less than 20%.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order had allowed deduction u/s. 80P of the Act following the judgement of the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC).

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

The appellant filed this appeal agitating the addition on reserves for bad and doubtful debts of Rs. 8,84,237/- and Provident Fund fine paid amounting to Rs. 7,355/-. The issue raised in this appeal does not arise out of the impugned order before us.