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2014 (6) TMI 427 - AT - Income TaxDenial of claim of deduction u/s 80P of the Act – Held that:- CIT(A) was of the view that the assessee-society is not a co-operative bank, therefore, the provisions of section 80(P)(4) are not attracted – CIT(A) has denied the deduction on the ground that the assessee has extended credit facilities to Class-B Members, who are not regular Members of the Society and thus the assessee is not eligible for claiming deduction u/s.80P(2)(a)(i) and (iv) - ‘Member’ includes ‘Associate Member’ - The reference of class ‘B’ Members by CIT(A) is with respect to Associate Members - the authorities under the Act cannot go beyond their jurisdiction and make classification within a classification of members to deny the benefit of deduction. Relying upon M/s. SL(SPL) 151, Karkudalpatty Primary Agricultural Co-operative Credit Society Ltd. Versus The Income Tax Officer [2014 (5) TMI 556 - ITAT CHENNAI] - the ‘nominal’ members or non-voting members are themselves included in the definition of ‘members’, they satisfy the relevant condition imposed by the legislature u/s 80P(2)(a)(i) - thus, the assessee is eligible to claim benefit of deduction u/s 80P(2)(a)(i) & (iv) of the Act – Decided in favour of Assessee.
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