Section 80P deduction cannot be denied for a wrong return claim when substantive eligibility is undisputed.

A co-operative society engaged in providing banking or credit facilities to its members remained substantively eligible for deduction under section 80P(2)(a)(i), and that benefit could not be denied merely because the claim was made under a wrong clause in the return due to inadvertence. Section 80A(5) was held inapplicable on these facts, so it did not bar the otherwise legitimate deduction. The authorities were not justified in refusing the deduction when the underlying entitlement under the Act was undisputed.

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Issues: Whether the assessee, a co-operative society entitled to deduction under section 80P(2)(a)(i), could be denied the benefit merely because the deduction was claimed under a wrong provision in the return, and whether section 80A(5) barred the claim.

Analysis: The assessee was engaged in providing banking or credit facilities to its members and its substantive eligibility for deduction under section 80P(2)(a)(i) was not in dispute. The denial was based on section 80A(5), but that provision was held to be inapplicable to the assessee's claim in the facts of the case. The record also showed that the claim had been made under a wrong clause due to an inadvertent mistake, and the authorities were not justified in refusing the legitimate deduction otherwise available under the Act.

Conclusion: The assessee was entitled to the deduction under section 80P(2)(a)(i), and the disallowance based on section 80A(5) was unsustainable. The issue was decided in favour of the assessee.

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