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2020 (2) TMI 881 - ITAT COCHINRectification u/s 154 - Deduction u/s 80P(2) denied relying on the judgment of The Mavilayi Service Co-operative Bank Ltd. v. CIT [2019 (3) TMI 1580 - KERALA HIGH COURT] - HELD THAT:- CIT(A) ought not to have rejected the claim of deduction u/s 80P(2) without examining the activities of the assessee society. The Full Bench of the Hon’ble jurisdictional High Court in the case of The Mavilayi Service Co-operative Bank Ltd. V. CIT (supra) had held that the A.O. has to conduct an inquiry into the factual situation as to the activities of the assessee society to determine the eligibility of deduction u/s 80P. In view of the dictum laid down by the Full Bench of the Hon’ble jurisdictional High Court (supra) restore the issue of deduction u/s 80P(2) to the files of the Assessing Officer. AO shall examine the activities of the assessee and determine whether the activities are in compliance with the activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969, subject to jurisdiction granted to the assessee as per the certificate of registration issued by the Registrar of Co-operative Societies, and accordingly, consider the allowabillity of deduction u/s 80P(2) of the I.T.Act. - Decided in favour of assessee for statistical purposes.
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