Sec. 80P of Income Tax Act, 1961 - Deduction - On a claim for deduction under Section 80P of the Income Tax Act, by reason of sub-section (4) thereof, the Assessing Officer has to conduct an enquiry into the factual situation as to the activities of the assessee society and arrive at a conclusion whether benefits can be extended or not in the light of the provisions under sub-section (4) of Section 80P of the IT Act. The appeal of the assessee came to be allowed with the observations that finding of the A.O. is not conclusive unless each loan applications / loan ledger are verified and the A.O, after necessary verification has to conclude that the assessee is not engaged primarily for providing credit facilities for agricultural purpose/allied activities. Therefore, the Assessing Officer shall examine the activities of the assessee afresh and determine whether the activities are in compliance with the activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969 and accordingly grant deduction u/s 80P(2) of the I.T.Act.—AYALUR SERVICE CO-OPERATIVE BANK LIMITED vs. ITO.[2020] 26 ITCD Online 020 (ITAT-COCHIN)