Shanti Prime Publication Pvt. Ltd.
Sec. 80P(2)(a)(i) of Income Tax Act, 1961— Deduction — The assessee is a co-operative society registered under the Kerala Co-operative Societies Act, 1969. For the assessment years 2013-2014 to 2015-2016, 'Nil’ returns were filed after claiming deduction u/s 80P of the I.T.Act. The assessment orders were passed for assessment years 2013- 2014 to 2015-2016, wherein the Assessing Officer disallowed the claim of deduction u/s 80P of the I.T.Act. The reasoning of the Assessing Officer to disallow the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act was that the assessee was essentially doing the business of banking, and therefore, in view of insertion of section 80P(4) of the I.T.Act with effect from 01.04.2007, the assessee will not be entitled to deduction u/s 80P of the I.T.Act. The appeals filed by the assessee were rejected by the CIT(A) for assessment years 2013-2014 to 2015-2016. The assessee has preferred these appeals before the Tribunal. Tribunal were of the view that there should be fresh examination by the Assessing Officer as regards the nature of each loan disbursement and purpose for which it has been disbursed, i.e., whether it for agricultural purpose or not. Tribunal have disposed of the appeals, the stay applications filed by the assessee are dismissed as infructuous and the appeals filed by the assessee were allowed for statistical purposes and the stay applications were dismissed. --- ALANALLUR SERVICE CO-OPERATIVE BANK LIMITED vs. ITO.  23 ITCD Online 49 (COCHIN)