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TMI Blog2022 (9) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Shri Pramod Vaidhya, Advocate For the Respondent : Shri Mayur Kamble, Sr. DR ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: These appeals filed by the assessee are directed against different orders of learned Commissioner of Income Tax (Appeals) Belagavi in ITA No. CIT(A)/BGM/10349/2015-16, CIT(A)/BGM/10518/2014-15 CIT(A)/BGM/10136/2015-16 all dated 27.12.2018. The assessments were framed by the ITO, Ward-1(2), Belgaum u/s 143(3) r.w.s. 254 of the Income-tax Act, 1961 (hereinafter the Act ), for the assessment year 2009-10 vide order dated 27.12.2018 and for the assessment years 2012-13 2013-14 u/s 143(3) of the Act vide order dated 30.09.2014 24.08.2015. 2. The only issue in these three appeals of assessee is as regards to the order of CIT(A) confirming the denial of claim of deduction u/s 80P(2)(a)(i) of the Act. The assessee has raised identical grounds in all the appeals and hence, we take the facts and grounds from ITA No. 26/PAN/2019 for the assessment year 2009-10. The relevant grounds raised by assessee are reads as under: 1. On the facts and circumstances of the case and in law the ld. CIT(A) erred in disallowing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in order to encourage and promote the growth of the co-operative sector generally in the economic life of the country and must, therefore, be read liberally and in favour of the assessee; (ii) That once the assessee is entitled to avail of deduction, the entire amount of profits and gains of business that are attributable to any one or more activities mentioned in subsection (2) of section 80P must be given by way of deduction; (iii) That this Court in Kerala State Cooperative Marketing Federation Ltd. and Ors. (supra) has construed section 80P widely and liberally, holding that if a society were to avail of several heads of deduction, and if it fell within any one head of deduction, it would be free from tax notwithstanding that the conditions of another head of deduction are not satisfied; (iv) This is for the reason that when the legislature wanted to restrict the deduction to a particular type of co-operative society, such as is evident from section 80P(2)(b) qua milk co-operative societies, the legislature expressly says so which is not the case with section 80P(2)(a)(i); (v) That section 80P(4) is in the nature of a proviso to the main provision contained in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al co-operative credit society and it transacts business only with members whether Regular or Associate or Nominal Members as noted by the AO. As referred by ld. counsel for the assessee, this issue has been dealt with by the Hon ble Madras High court in the case of PCIT vs S1308 Ammapet Primary Agricultural Co-operative Bank Ltd. in T.C.A. No. 882 891 of 2018 dated 06.12.2018. The relevant extract of judgement of S1308 Ammapet Primary Agricultural Co-operative Bank Ltd. (supra) is as under: 12.Admittedly, the assessee society is registered under the provisions of the TNCS Act. It defines 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to point out that the Hon ble Supreme Court in the decision in the case of Citizen Cooperative Society Limited also observed that in the light of insertion of Sub-Section (4) to Section 80P of the Act by the Finance Act, 2006, such deduction should not be admissible to a cooperative bank and that if it is a primary agricultural credit society or a primary cooperative agriculture and rural development bank, the deduction would still be provided. 17. In the preceding paragraphs, we have pointed out the definitions of the expressions members and associate member under the TNCS Act and held that an associate member is also a member in terms of Section 2(16) of the TNCS Act. Furthermore, the Assessing Officer himself found that the associate members are also admitted as members of the society. In such circumstances, the Assessing Officer fell into an error in not granting any relief to the assessee society, which was rightly granted by the CIT (A) as confirmed by the Tribunal. In addition to that, the Assessing Officer has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub-Section (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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