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TMI Blog2024 (5) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to construe the expression Members in section 80P(2)(a)(i) of the Act in the light of definition of that expression as contained in the concerned co- operative societies Act. As held in UP CO-OPERATIVE CANE UNION FEDERATION LIMITED [ 1997 (1) TMI 7 - SUPREME COURT] definition of 'member' under the Kerala Act, loans given to such nominal members would qualify for the purpose of deduction u/s 80P(2)(a)(i) - Grounds raised by the assessee stands allowed. - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER For the Appellant : Smt. Sheetal Borkar, Advocate For the Respondent : Shri Parithivel, JCIT DR ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal arises out of the order dated 13.09.2023 passed by NFAC, Delhi for A.Y. 2016-17 on following grounds of appeal: 1. The learned CIT(A), Bangalore erred in passing the Order in the manner he did. 2. The learned CIT(A), erred in disallowing the claim of deduction u/s 80P(2)(a)(i) without appreciating the submission of the Appellant. 3. The learned CIT(A) failed to appreciate the ratio laid down by the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. Vs Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployed by the Legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice that being the life-purpose of the existence of the institution of courts. It is common knowledge that this court has been making a justifiably liberal approach in matters instituted in this court. But the message does not appear to have percolated down to all the other courts in the hierarchy. And such a liberal approach is adopted on principle as it is realized that : 1. Ordinarily, a litigant does not stand to benefit by lodging an appeal late. 2. Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. ......................................................1.Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908, may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Ld.AO by holding that the issue was covered in favour of revenue by the decision of Hon ble Supreme Court in case of Citizens Co-operative Society Ltd. v. ACIT reported in 397 ITR 1. 3.7 Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before this Tribunal. 4. It is submitted by the Ld.AR that the assessee accepted the disallowance of Rs. 26,20,873/- to be income under the head income from other sources, however in respect of the balance amount that was disallowed u/s. 80P(2)(a), the assessee filed appeal before this Tribunal. 5. The Ld.AR submitted that the assessee was providing credit facilities to the nominal members as well as its regular members and a disallowance of Rs. 26,18,389/- was made as assessee did not submit any documentary proof to support the claim that the credit facilities were provided by the assessee only to its members. The Ld.AR submitted that Hon ble Supreme Court in case of Mavilayi Service Co- operative Bank Ltd. v. CIT reported in 431 ITR 1 has considered the eligibility of claim u/s. 80P(2)(a)(i) where nominal members are also considered to be part of co- operative society and are eligible for purpose of exemption u/s. 80P. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for a banking license to the RBI, as their byelaws also contain as one of the objects of the Society the carrying on of the business of banking,. This was turned down by the RBI in a letter dated 25.10.2013 as follows: Application for license Please refer to your application dated April 10, 2013 requesting for a banking license. On a scrutiny of the application, we observe that you are registered as a Primary Agricultural Credit Society [PACS] . In this connection, we have advised RCS vide letter dated UBD (T) No.401/10.00/16A/2013-14 dated October 18, 2013 that in terms of Section 3 of the Banking Regulation Act, 1949 [ARCS], PACS are not entitled for obtaining a banking license. Hence, your society does not come under the purview of the Reserve Bank of India, RCS will issue the necessary guidelines in this regard. 7. After considering these, the Hon'ble Supreme Court has summed up the issue in paragraph nos.45 and 46 as under: 45. To sum up, therefore, the ratio decidendi of Citizen Cooperative Society Limited (supra), must be given effect to Section 80P of the Income Tax Act, being a benevolent provision enacted by the Parliament to encourage and promote the credit of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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