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| The Tax Publishers2020 TaxPub(DT) 1822 (Coch-Trib) INCOME TAX ACT, 1961
Section 80P
AO had to conduct an inquiry into the factual situation as to activities of assessee society to determine eligibility of deduction under section 80P. However, AO rejected claim of deduction under section 80P(2) without examining activities of assessee-society.Accordingly, matter was remanded to AO to examine activities of assessee and determine as to whether activities were in compliance with 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 - Allowability - Assessee, a society registered under Kerala Co-operative Societies Act, 1969 alleged to be engaged in business of banking- No due enquiry made by AO as regards activities of assessee -
Assessee, a co-operative society registered under Kerala Co-operative Societies Act, 1969 claimed deduction under section 80P. AO disallowed assessee's claim of deduction under section 80P on the ground that assessee was doing business of banking, and therefore, in view of insertion of section 80P(4), deduction could not be allowed. Held: AO had to conduct an inquiry into the factual situation as to activities of assessee society to determine eligibility of deduction under section 80P. However, AO rejected claim of deduction under section 80P(2) without examining activities of assessee-society.Accordingly, matter was remanded to AO to examine activities of assessee and determine as to whether activities were in compliance with activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969 and accordingly, grant deduction under section 80P(2).
REFERRED :
FAVOUR : Matter remanded
A.Y. :
IN THE ITAT, COCHIN BENCH
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