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| The Tax Publishers2019 TaxPub(DT) 3792 (Chen-Trib) INCOME TAX ACT, 1961
Section 80P(2)(a)(i)
AO was not obliged to grant deduction under section 80P(2) by merely looking at certificate of registration issued by competent authority under Co-operative Societies Act. Instead, he had to conduct enquiry into factual situation as to activities of assessee and arrive at a conclusion whether benefits of section 80P could be extended or not. Accordingly, AO was directed to examine actual activities carried on by assessee so as to grant deduction under section 80P.
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Deduction under section 80P(2)(a)(i) - Allowability - Effect of certificate of registration issued by competent authority under co-operative Societies Act -
Assessee-society claimed deduction under section 80P(2)(a)(i). AO treated assessee as Primary Co-operative Bank so as to invoke section 80P(4). Assessee's case was that it was Primary Agricultural Credit Co-operative Society registered under Kerala Co-operative Societies Act, 1969 and not engaged in banking business. Held: AO was not obliged to grant deduction under section 80P(2) by merely looking at certificate of registration issued by competent authority under Co-operative Societies Act. Instead, he had to conduct enquiry into factual situation as to activities of assessee and arrive at a conclusion whether benefits of section 80P could be extended or not. Accordingly, AO was directed to examine actual activities carried on by assessee so as to grant deduction under section 80P.
Followed:Mavilayi Service Co-operative Bank Ltd. v. CIT [ITA No. 97/2018, dt. 19-3-2019]. Overruled:Kerala Sponge Iron Ltd., (2015) 379 ITR 330 (Ker) : 2015 TaxPub(DT) 3551 (Ker-HC).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2014-15 & 2015-16
INCOME TAX ACT, 1961
Section 68 Section 80P(2)
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