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TMI Blog2014 (6) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is a primary agriculture credit co-operative society registered under the Tamil Nadu Co-operative Societies Act, 1983 (herein after referred to as 'the Societies Act'). The society for the AYs under consideration in its return of income claimed deduction u/s.80P(2) of the Income Tax Act, 1961 (herein after referred to as 'the Act'). The Assessing Officer in scrutiny assessment proceedings held that the assessee is registered under the Societies Act as Co-operative Bank and is engaged in the activities akin to commercial banking and has earned income at par with other commercial banks. The Assessing Officer held that the assessee is not eligible to claim deduction u/s.80P of the Act. Aggrieved against the assessment order for the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Class-B Members are shareholders of the society. Section 2(16) of the Tamil Nadu Cooperative Societies Act, 1983 defines 'Member' which includes Associate Member. The ld.AR further submitted that the case of the assessee is squarely covered by the decision of the coordinate bench of the Tribunal in ITA No.292/Mds/2014 in the case of M/s.SL(SPL) 151, Karkudalpatty Primary Agricultural Cooperative Credit Society Ltd., Vs. ITO decided on 17-03-2014. In the said case, the Tribunal has held that for availing deduction u/s.80P, classification of Members in 'A' and 'B' is irrelevant. The ld.AR also placed on record a copy of the order of the Tribunal in ITA No.197/Mds/2013 in the case of ITO Vs. M/s.Veerakeralam Primary Agricultural Co-operative C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of the term 'Member' clearly shows that 'Member' includes 'Associate Member'. The reference of class 'B' Members by CIT(Appeals) is with respect to Associate Members. The CIT(Appeals) has denied deduction to the assessee only for the reason, that credit facilities have been extended to a particular class of Members, who are not normal Members of the society. We do not agree with the CIT(Appeals) on the issue. The authorities under the Act cannot go beyond their jurisdiction and make classification within a classification of members to deny the benefit of deduction. The co-ordinate bench of Tribunal in the case of M/s.SL(SPL) 151, Karkudalpatty Primary Agricultural Co-operative Credit Society Ltd., Vs. ITO (supra) has dealt with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly by the legislature. Moreover, we find that the case law of hon'ble Punjab & Haryana high court (supra) also supports the assessee's case wherein it has been held under the very provision that for the purpose of impugned deduction, it is irrelevant so far as classification of the members in 'A' or 'B' category is concerned. We follow the same and accept contentions of the assessee". 7. Similar issue had come up before the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Punjab State Cooperative Bank Ltd., reported as 300 ITR 24, wherein the Hon'ble High Court had decided the issue in favour of the assessee. The ld.DR has not been able to controvert the contentions of the AR. 8. The issue in appeal is similar to the one ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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