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| The Tax Publishers2019 TaxPub(DT) 8432 (Coch-Trib) INCOME TAX ACT, 1961
Section 80P(4)
Where AO was required to conduct an inquiry into factual situation as to activities of assessee-society to determine eligibility of deduction under section 80P, the instant issue with regard deduction under section 80P(2) was remanded to AO to examine the activities of assessee and determine as to whether such activities were in compliance with the activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969 and accordingly grant deduction under section 80P(2).
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Deduction under section 80P - Co-operative society - No inquiry into eligibility of society -
Assessee was a co-operative society registered under the Kerala Co-operative Societies Act, 1969. AO denied assessee's claim of deduction under section 80P(2) holding that the assessee was doing business of banking, therefore, in view of insertion of section 80P(4) with effect from 01-4-2007, it would not be entitled to deduction under section 80P(2). Held: In view of High Court decision in the case of The Mavilayi Service Co-operative Bank Ltd. v. CIT [ITA No. 97/2016 Order dated 19-3-2019]: 2019 TaxPub(DT) 4909 (Ker-HC), AO is required to conduct an inquiry into factual situation as to activities of assessee-society to determine eligibility of deduction under section 80P. Therefore, the instant issue with regard deduction under section 80P(2) was remanded to AO to examine the activities of assessee and determine whether such activities were in compliance with the activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969 and accordingly grant deduction under section 80P(2).
Followed:The 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 : In assessee's favour (by way of remand)
A.Y. :
INCOME TAX ACT, 1961
Section 80P
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