Section 80P of Income Tax Act, 1961— Deduction u/s 80P— The solitary issue raised in this appeal is whether the assessee is entitled to deduction u/s 80P of the I.T.Act?

The AO denied the claim of deduction u/s 80P, treated the assessee as co-operative bank and not co-operative society.

Held that—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 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.

In view of the dictum laid down by the Full Bench of the Hon’ble High Court, the issue of deduction u/s 80P(2)(a)(i) is restored to the Assessing Officer.[THE INCOME TAX OFFICER WARD – 4 TIRUR. VERSUS M/S. KODUR SERVICE COOPERATIVE BANK LTD.][2019] 16 ITCD Online (12) [ITAT COCHIN]