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TMI Blog2014 (6) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... 0P(2)(a)(i) – also in CIT Vs. Punjab State Cooperative Bank Ltd. [2008 (3) TMI 45 - HIGH COURT PUNJAB AND HARYANA] the assessee is eligible for deduction - Revenue has not been able to controvert the contentions of the assessee – thus, the assessee is eligible to claim benefit of deduction u/s.80P(2)(a)(i) & (iv) of the Act – Decided in favour of Assessee. - I.T.A. No. 919/Mds/2013 - - - Dated:- 23-5-2014 - Dr. O. K. Narayanan And Shri Vikas Awasthy,JJ. For the Appellant : Shri M. Narayanan For the Respondent : Shri Anirudh Rai, CIT-DR ORDER Per Vikas Awasthy, J. M: The appeal has been filed by the assessee for the Assessment Year (AY) 2009-10 impugning the order of Commissioner of Income Tax(Appeals)-Salem, da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has come in second appeal before the Tribunal assailing the findings of the CIT(Appeals). 3. Shri M.Narayanan, 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 Members. The assessee has two types of members Class-A and Class-B . The Class-A Members or normal Members they enjoy certain privileges such as voting rights etc. The other Members are classified as Class-B Members or associate Members. Both Clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The CIT(Appeals) in his order has held that the assessee-society is not a co-operative 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 and thus the assessee is not eligible for claiming deduction u/s.80P(2)(a)(i) (iv). 6. Section 2(16) of the Societies Act, 1983 defines Member as under: Member means a person joining in the application for the registration of Society and a person admitted to membership after registration in accordance with the provisions of this Act, the Rules and Bylaws and includes an Associate Member . A perusal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber 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 statute; unless provided speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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