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2019 (8) TMI 510 - AT - Income TaxEntitled to deduction u/s 80P - AO for denying the claim of deduction u/s 80P treated the assessee as co-operative bank and not co-operative society - HELD THAT:- The 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 AO 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 of the I.T.Act. It was held by the Hon’ble High Court that the Assessing Officer is not bound by the registration certificate issued by the Registrar of Kerala Co-operative 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. Issue of deduction u/s 80P(2)(a)(i) is restored to the Assessing Officer. The Assessing Officer shall examine the activities of the assessee and determine whether the 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- Appeal filed by the Revenue is allowed for statistical purposes.
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