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2019 (6) TMI 1089 - AT - Income TaxEntitled to deduction u/s 80P - assessee in this case is a registered as co-operative societies under the Kerala State Co-operative Societies Act, 1969 - AO for denying the claim of deduction u/s 80P of the I.T.Act, treated the assessee as a co-operative bank and not a co-operative society - HELD THAT:- Larger Bench of the Hon’ble jurisdictional High Court in the case of The Mavilayi Service Cooperative Bank Ltd. [2019 (3) TMI 1580 - KERALA HIGH COURT] held that the Assessing Officer 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 - as held by the Hon’ble High Court that the Assessing Officer is not bound by the registration certificate issued by the Registrar of Kerala Cooperative Society classifying the assessee-society as a cooperative society. The Hon’ble High Court held that each assessment year is separate and eligibility shall be verified by the Assessing Officer for each of the assessment years. The issue of deduction u/s 80P(2)(a)(i) is restored to the AO. AO shall examine the activities of the assessee and determine whether their activities are in compliance with the activities of a cooperative society functioning under the Kerala Co-operative Societies Act, 1969 and grant deduction u/s 80P(2) in accordance with law. It is ordered accordingly. Appeals filed by the Revenue are allowed for statistical purposes.
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