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| The Tax Publishers2019 TaxPub(DT) 8253 (Coch-Trib) INCOME TAX ACT, 1961
Section 80P(2)
When certificate had been issued to assessee by Registrar of Co-operative Societies characterizing it as primary agricultural credit society, AO ought not to have rejected claim of deduction under section 80P(2) without examining activities of assessee-society and had to conduct an inquiry into factual situation as to activities of assessee society. Matter remanded. AO would examine activities of assessee and detemine whether activities were in compliance with activities of a co-operative society functioning under Kerala Co-operative Societies Act, 1969 and accordingly grant deduction under section 80P(2).
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Deduction under section 80P(2) - Co-operative society - Denial of deduction in view of section 80P(4) without examining activities of assessee -
Assessee a co-operative society registered under Kerala Co-operative Societies Act, 1969 claimed deduction under section 80P(2). AO took the view that assessee was doing business of banking and therefore, in view of insertion of section 80P(4) with effect from 1-4-2007, assessee was not entitled to deduction under section 80P(2).Held: When certificate had been issued to assessee by Registrar of Co-operative Societies characterizing it as primary agricultural credit society, AO ought not to have rejected claim of deduction under section 80P(2) without examining activities of assessee-society and had to conduct an inquiry into factual situation as to activities of assessee society. Matter remanded. AO would examine activities of assessee and determine whether activities were in compliance with activities of a co-operative society functioning under Kerala Co-operative Societies Act, 1969 and accordingly grant deduction under section 80P(2).
Relied:Mavilayi Service Co-operative Bank Ltd. v. CIT [ITA No. 97/2016, Order, dated 19-3-2019] : 2019 TaxPub(DT) 4909 (Ker-HC).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2010-11
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