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TMI Blog2011 (6) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... s entitled for deduction u/s. 80 P of the Act. 2. In support of the ground, the Ld. D.R. submitted that the Ld CIT(A) has followed decision of Pune Bench of the Tribunal in the case of Shree Mahaveer Nagri Sahakari Pat Sanshtha Ltd. v/s. DCIT, ITA (SS) No. 2/PN/97 (Block A.Y. 1989-90 to 1996-97), order dated 18th February 2000 without appreciating that in the case of assessee, facts are distinguishable. The Ld CIT(A) has also failed to appreciate that provision laid down u/s. 80P(2)(ai) of the Act are not applicable in the case of assessee since lending in such society is allowed to members only. He submitted that A.O in the present case has made addition u/s. 68 of the Act on account of Fixed Deposits found credited in assessee's books, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pune Bench of the Tribunal in the case of Shree Mahaveer Nagri Sahakari Pat Sanshtha Ltd. v/s. DCIT (Supra) has held the society is eligible for claiming deduction u/s. 80P of the I.T. Act. For a ready reference, para No. 36 and 37 of the said order are being reproduced hereunder : "36. As regards the applicability of section 80P(2)(a)(i), we find that the assessee has given loan only to its members. Shri Patankar, Manager, in his statement u/s. 132(4) at the time of search itself and stated that for drawing a loan, the person concerned must be a member of the Society (page 66 of the paper book). Further the confirmation from the Chairman placed at page 132 of the paper book reveals that the loans were provided only to Members. The Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court in the case of Co-operative Central Bank (1970) AIR SC 25. Violation of bye-laws by the assessee cannot lead to the automatic conclusion that the assessee is not a Co-operative Society. The Society was granted registration by the registrar of Co-op. Societies which shows that despite the fact that in the course of action by the Income-tax Department where it was held that the Society had accepted deposits from non-members in bogus names, the Government Auditor or the Registrar after the search has not held that the assessee ceases to be a Co-operative Society, nor have they cancelled the registration of the assessee as a Co-operative Society under the Maharashtra Co-op. Societies Act. Hence, we do not agree with the argume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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