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TMI Blog2014 (6) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... fy the relevant condition imposed by the legislature u/s 80P(2)(a)(i) - 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 specifically by the legislature - 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 - the assessees are eligible to claim benefit of deduction u/s.80P(2)(a)(i) of the Act – Decided in favour of Assessee. - I.T.A. Nos. 922 & 923/Mds/2013 - - - Dated:- 23-5-2014 - Dr. O. K. Narayanan And Shri Vikas Awasthy,JJ. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies to its Members. But the assessee is providing credit facilities to non-members i.e., Class B Members or associate Members who are not recognized as Members of the society. Therefore, the assessee is not entitled to deduction u/s.80P(2)(a)(i) of the Act. The CIT(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 both the 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.Narayanan, appearing on behalf of the assessee submitted that, the CIT(Appeals) has dis-allowed deduction u/s.80P(2)(a)(i) on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing on behalf of the Revenue vehemently supported the impugned orders and prayed for the dismissal of the appeals of the assessee. 5. We have heard the submissions made by the representatives of both the sides and have perused the orders of the authorities below as well as the decisions of the co-ordinate bench of the Tribunal relied upon by the ld.AR of the assessee. In both the 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) only on the ground that the assessee s credit and various other loan facilities have been allowed to be availed by B class nominal members whose liability is limited, at the best; to the extent of loan repayable instead of A class members who have voting rights and dividend claim, and also that the latter members are jointly and severely liable. In this backdrop, when we peruse the relevant provisions of the State Co-operative Societies Act, 1983, governing the assessee-Society, it is evident 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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