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TMI Blog2019 (1) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-14 respectively. 2. The following substantial questions of law are framed for consideration in these appeals : "i. Whether the Appellate Tribunal was right and justified in following the jurisdictional High Court's decision when there is an Apex Court decision of latter date available? ii. Whether, on the facts and circumstances of the case and in law, the Tribunal was right and justified in allowing the deduction under Section 80P(2)(a)(i) to the assessee society when the Apex Court, in its decision in the case of Citizen Cooperative Society Ltd. Vs. ACIT [reported in (2017) 84 Taxmann. 114] held in paragraph 25 that such activity of the appellant is that of finance business and cannot be termed as cooperative society ? And ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. For the assessment year 2013-14, before the Assessing Officer, among other things, for deduction under Section 80P(2)(a)(i) of the Act, the assessee relied upon the decision of the Hon'ble Supreme Court in the case of U.P. Cooperative Cane Union Federation Ltd. Vs. CIT [reported in (1999) 237 ITR 574] for the proposition that in the absence of definition of the word 'member' in the Act, it must, therefore, be concluded in the context of the provisions of the State Act. For deduction under Section 80P(2)(d) of the Act, the assessee relied upon the decision of the Delhi High Court in the case of CIT Vs. M/s.Kribhco [reported in (2012) 349 ITR 618]. Ultimately, the Assessing Officer concluded that the facts and circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay in the society whereas A Class members enjoy all rights in addition to other rights and liabilities in the society as specified in the By-laws. The Assessing Officer concluded that the associate members cannot be regarded as members of the cooperative society. The Assessing Officer allowed the deduction under Section 80P(2)(d) of the Act. The Assessing Officer also concluded that the assessee was not entitled to claim deduction under Section 80P(2)(a)(i) of the Act and that the Department decided to file special leave petitions before the Hon'ble Supreme Court against the said two decisions. The Assessing Officer, further observing that the collection of demand would not be enforced till the outcome of the special leave petitions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines the word 'members' under Section 2(16) to mean a person joining in the application for the registration of society and a person admitted to the membership after registration in accordance with the provisions of the Act, the Rules framed thereunder and the By-laws and includes an associate member. The expression 'associate member' is defined under Section 2(6) of the TNCS Act to mean a member, who possesses only such privileges and rights of a member and who is subject only to such liabilities of a member as may be specified in this Act, the Rules and the By-law. 13. Thus, the definition of the word 'members' includes an associate member and therefore, the Assessing Officer fell into an error in drawing a distin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, the Hon'ble Supreme Court found that the society carried on certain activities, which were contrary to the provisions of the Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995 and that they accepted deposits from third parties, who were not members in the real sense and were using those deposits to advance gold loans. Therefore, the Hon'ble Supreme Court pointed out that such an activity of the said society was that of a finance business and could not be termed as a cooperative society and that the loans, which were disbursed, were without the approval from the Registrar of Mutually Aided Cooperative Societies, Ranga Reddy District. The Hon'ble Supreme Court found that the said society was not entitled to dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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