Deduction U/s. 80P(2) cannot be denied to registered Primary Agricultural Credit Society for doing banking business

ITO Vs. Edarikode Service Co-operative Bank Ltd. (ITAT Cochin) In this case  assessments were completed under section 143(3) read with section 147 of the Income Tax Act for the above mentioned assessment years, by denying the claim of deduction under section 80P(2) of the Income Tax Act. The reason for the assessing officer to deny the benefit of deduction under section 80P(2) of the Act was that the assessee was primarily engaged in the business of banking and in view of the provisions of section 80P(4), the co-operative society doing business of banking is not entitled to the benefit of ded...