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TMI Blog2020 (10) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... s of banking. Even the claim of the Assessee for deduction requires to be examined under the first part of Sec.80P(2)(a)(i) of the Act. Hon'ble Supreme Court in case of Citizen Co- operative Society Ltd. [ 2017 (8) TMI 536 - SUPREME COURT] has also held that, it is also important to ascertain as to what is the nature of income which is claimed as exempt and as to how the principle of mutuality is not violated in respect of such income. An examination of (i)the memorandum of association, the articles of association, (ii) the byelaws and other documents explaining the rules and regulations of the society is necessary, so as to clearly understand the purpose and the nature of business done by it. An examination of the facts in light of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment with cooperative banks was treated as income from other sources not eligible for deduction under section 80 P (2) (d) relying on Hon ble Karnataka High Court decision in case of M/sTotgar s Co-operative sale Society Ltd dated 16/06/2017. b) The principles of maturity were violated relying on the decision of orderable apex court in case of M/s.Citizen Co-operative society Ltd Hydrabad dated 08/09/2017 3. Aggrieved by addition made by Ld.AO, assessee preferred appeal before Ld.CIT(A). 4. Ld.CIT(A) observed that, nominal members do not contribute to share capital and pays ₹ 50 words admission fee which is credited to P L account. It was also recorded by Ld.CIT(A) that assessee has 279 nominal members and their not reflected i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us decisions of this tribunal wherein the issue has been remanded to Ld.AO for due verification of facts. 8. On the contrary Ld.Sr.DR submitted that, issue may be remanded to Ld.AO for due verification of facts in the light of decisions of Hon ble jurisdictional High Court, as well as Hon ble Apex Court referred to herein. 9. We have perused submissions advanced by both sides in light of records placed before us. 10. The grievance of assessee is that, in its case test of mutuality is satisfied however, Ld.CIT(A) did not spell out as to how the said test fails. We are of the view that, such grievance of the assessee would be addressed by setting aside the issue of deduction u/s.80P(2)(a)(i) of the Act to Ld.AO for consideration afre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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