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TMI Blog2021 (10) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... ovo passing of the appellate order with the following directions CIT(A) shall decide the appeal on the basis of the findings recorded by the Hon'ble Supreme Court more particularly in the matter of Mavilayi Service Cooperative Bank Ltd. [ 2021 (1) TMI 488 - SUPREME COURT] While deciding the issue on the basis of the above said judgment, the Ld. CIT(A) shall examine the rules of assessee-society as well as the Act under which the society was formed. For the purpose of ascertaining the scope of the activities of the assessee, the CIT(A) shall examine whether its activities were restricted to members or non members or both. Whether the assessee was having any license for carrying out the banking activities for the members and non me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not entitled to deduction u/s. 80P(2)(a)(2) of the Act. 4. That on the facts and circumstances of the case, learned CIT(A) while confirming the disallowance of deduction claimed u/s. 80P of the Act has relied upon judgment of Honourable Supreme Court in the case of The Citizens Cooperative Society Ltd. vs. ACIT, Hyderabad Civil Appeal No. 10245 of 2017. Judgment of Hon'ble Supreme Court is not applicable to the facts of the assessee since judgment of Hon'ble Supreme Court is in respect of multistate cooperative credit societies whereas assessee is a small cooperative society having geographical area of three villages only. 5. That on the facts and circumstances of the case, learned CIT(A) has grossly erred in concluding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer u/s. 40(a)(ia) of the Act. 10. That on the facts circumstances of the case, Learned Commissioner of Income Tax (Appeals) has grossly erred in confirming addition of ₹ 11251/- being deduction claimed for taxes paid to local authorities. 11. That the Appellant requests for leave to add or amend the grounds of appeal before the appeal is heard or disposed off. 3. At the outset, the Ld. AR submitted that the findings recorded by the Ld. CIT(A) as well as the Assessing Officer were premised on the decision of Hon'ble Supreme Court in the matter of 'The Citizens Cooperative Society Ltd. in ITA 10245 of 2017. It was submitted that the Hon'ble Supreme Court in the subsequent decision has considered the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Also, in case it is found that there are instances of loans being given to non-members, profits attributable to such loans obviously cannot be deducted. In view of the above, it was submitted that the assessee is entitled to the relief claimed in the present appeal. 4. Per contra, the Ld. DR had submitted that the decision of the Supreme Court was based on appreciation of various Act including Andhra Pradesh Act, Kerala Act and U.P. Cooperative Cane Unions Federation Ltd. and others. DR submitted that in the present case the assessee was registered as a society under the Circle Registrar Cooperative Society, Hoshiarpur (Punjab), and it is necessary to examine rules and regulation of the society as well as of relevant society Act of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of ascertaining the scope of the activities of the assessee, the CIT(A) shall examine whether its activities were restricted to members or non members or both d. Whether the assessee was having any license for carrying out the banking activities for the members and non members. e. Based on the above said factual findings the CIT(A) shall decide the matter after finding opportunity of hearing to the assessee as well as to the Assessing Officer and passed a reasoned and speaking order. f. Needless to say the assessee had liberty to file any other document which it deem necessary for due disposal of the appeal and may rely upon any of the Judgment referred before us. Needless to say in case the assessee files any docum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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