The Tax Publishers2020 TaxPub(DT) 1140 (Coch-Trib)

INCOME TAX ACT, 1961

Section 154

CIT(A) had initially allowed the appeals of assessee and granted deduction under section 80P(2) and subsequently, CIT(A) passed orders under section 154 wherein the claim of deduction under section 80P was denied, therefore matter was remanded back to AO to examine the activities of assessee and accordingly grant deduction under section 80P(2).

Rectification under section 154 - Deduction under section 80P - Remand of matter -

Assessee-societies claimed deduction under section 80P. AO disallowed the claim of deduction under section 80P alleging that assessee was doing business of banking, and therefore, in view of insertion of section 80P(4) with effect from 01-4-2007, assessee would not be entitled to deduction under section 80P(2). CIT(A) allowed the appeals by holding that assessee was eligible for deduction under section 80P. CIT(A) issued notices under section 154 proposing to rectify his orders passed, rejected the objections raised by assessee and passed orders under section 154 disallowed the claim of assessee under section 80P(2). Held: CIT(A) had initially allowed the appeals of assessee and granted deduction under section 80P(2). Subsequently, CIT(A) passed orders under section 154 wherein the claim of deduction under section 80P was denied, by relying on the judgment of Mavilayi Service Co-operative Bank Ltd. v. CIT [[ITA No.97/2016 Order dated 19-3-2019] : 2019 TaxPub(DT) 4909 (Ker-HC)]. CIT(A) ought not to have rejected the claim of deduction under section 80P(2) without examining the activities of assessee-society. In view of dictum laid, matter was remanded back to AO to examine the activities of assessee and accordingly grant deduction under section 80P(2).

REFERRED : DCIT v. Ace Multi Axes Systems Ltd. 2017 TaxPub(DT) 5071 (SC) The Citizen Co-Operative Society Limited v. ACIT (2017) 397 ITR 1 (SC) : 2017 TaxPub(DT) 2053 (SC) The Mavilayi Service Co-Operative Bank Ltd. v. CIT [ITA No.97/2016 Order dated 19-3-2019] : 2019 TaxPub(DT) 4909 (Ker-HC) The Chirakkal Service Co-Operative Bank Ltd. v. CIT (2016) 384 ITR 490 (Ker.) : 2016 TaxPub(DT) 1770 (Ker-HC) Perinthalmanna Service Co-Operative Bank Limited v. ITO (2014) 363 ITR 268 (Ker) : 2014 TaxPub(DT) 1572 (Ker-HC)

FAVOUR : In assessee's favour by way of remand

A.Y. : 2009-10 & 2011-12

INCOME TAX ACT, 1961

Section 80P(2)

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