Tribunal held that the CIT(A) ought not to have rejected the claim of deduction under s. 80P(2) without examining the activities of the assessee. The Full Bench of the High Court had held that the AO had to conduct an inquiry into the factual situation as to the activities of the assessee to determine the eligibility of deduction under S. 80P. Accordingly as as regards the grant of deduction under S. 80P on interest on investments with co-operative banks and other banks, the AO shall follow the law laid down by the Full Bench of the High Court in Mavilayi Service Co-Operative Bank L td. v. CIT (2019) 414 ITR 67 / 309 CTR 121 /179 DTR 65 (FB) (Ker.)(HC) and examine the activities of the assessee before granting deduction under S. 80P on such interest. (AY.2015-16), (AYs. 2008-09, 2011-12, 2012-13, 2014-15, 2015-16)
Chirakara Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 457 (Cochin)(Trib.) Pangode Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.) Andoorkonam Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.) Varkala Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.)
S. 80P : Co-operative societies-Certificate issued by Registrar of Co-Operative Societies is not binding on AO–Interest on investments with Co-Operative Banks-AO is to follow law laid down by full bench of Kerala High Court in Mavilayi Service Co-Operative Bank Ltd. v. CIT (2019) 414 ITR 67 (FB) (Ker.)(HC) [S.80P(2)(4)]