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TMI Blog2014 (5) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue that the ‘members’ defined in sub-clause(i) of section 80P(2) should only include voting members would amount to a classification within classification which is beyond the purview of tax statute; unless provided specifically by the legislature - the assessee is entitled to claim benefit of deduction u/s.80P of the Act – Decided in favour of Assessee. - I.T.A. Nos. 904, 905 & 906/Mds/2013 - - - Dated:- 6-5-2014 - Dr. O. K. Narayanan And Shri Vikas Awasthy,JJ. For the Appellant : Shri M. Balu, C.A., For the Respondent : Shri Anirudh Rai, CIT-DR ORDER Per Vikas Awasthy, J.M: The three appeals i.e., ITA Nos. 904/Mds/2013, for the Assessment Year (AY) 2007-08, 905/Mds/2013 for AY.2008-09 906/Mds/2013 for AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) further observed that the profit motive cannot be denied considering the business activities of the assessee. The CIT(Appeals) dismissed the appeals of the assessee for all the three AYs. Aggrieved by the order of the CIT(Appeals), the assessee has come in second appeal before the Tribunal assailing the findings of the CIT(Appeals). 3. Shri M.Balu, appearing on behalf of the assessee submitted that, the CIT(Appeals) has dis-allowed deduction u/s.80P(2)(a)(i) on the ground that the assessee has extended credit facilities to associate Members i.e., Class- B Members and the income earned from them is not eligible for deduction. The ld.AR contended that the assessee is engaged in the business of providing credit facilities to its M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the decisions of the co-ordinate bench of the Tribunal relied upon by the ld.AR of the assessee. In all the three appeals, the assessee has impugned the findings of the CIT(Appeals) for rejecting the claim of deduction u/s.80P(2)(a)(i) to the assessee. The CIT(Appeals) in his order has admitted the fact that the assessee-society is not a cooperative bank, therefore, the provisions of section 80(P)(4) are not attracted. However, the CIT(Appeals) has denied the deduction on the ground that the assessee has extended credit facilities to Class-B Members, who are not regular Members of the Society. 6. Section 2(16) of the Societies Act, 1983 defines Member as under: Member means a person joining in the application for the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt from the definition of member u/s 2(16) that the same includes an associate member u/s 2(6) appended therein. In other words, the nominal members also enjoy statutory recognition as per the Act. The net result is that once the nominal members or non-voting members are themselves included in the definition of members , they satisfy the relevant condition imposed by the legislature u/s 80P(2)(a)(i). We make it clear that we are dealing with a deduction provision to be interpreted liberally. In our considered opinion, the objections of the Revenue that the members defined in sub-clause(i) of section 80P(2) should only include voting members would amount to a classification within classification which is beyond the purview of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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