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The Tax Publishers2020 TaxPub(DT) 1847 (Coch-Trib) INCOME TAX ACT, 1961
Section 80P(2)
Where AO without examining activities of assesse-society rejected claim of deduction under section 80P(2), Issue was restored to AO with direction to examine activities of assessee and to determine 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 - Co-operative society - Disallowance without examining into activities of assesse-society -
Assessee, a co-operative society registered under Kerala Co-operative Societies Act, 1969 claimed deduction under section 80P. AO disallowed deduction on the reasoning 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 the deduction under section 80P(2). Held: AO ought not to have rejected claim of deduction under section 80P(2) without examining activities of assesse-society. He had to conduct an inquiry into the factual situation as to activities of assessee society to determine eligibility of deduction under section 80P. Issue was restored to AO with direction to examine activities of assessee and to determine 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).
Relied:Mavilayi Service Co-operative Bank Ltd. v. CIT, ITA No. 97/2016 order dt. 19-3-2019
REFERRED :
FAVOUR : Matter remanded
A.Y. :
IN THE ITAT, COCHIN BENCH
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