TMI Blog2014 (6) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... ake 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. - I.T.A. Nos. 920 & 921/Mds/2013 - - - Dated:- 23-5-2014 - Dr. O. K. Narayanan And Shri Vikas Awasthy,JJ. For the Appellant : Shri M. Narayanan, For the Respondent : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e., Class B Members or associate Members who are not recognized as Members of the society. Therefore, the assessee is not entitled to deduction u/s.80P(2)(a)(i) of the Act. The CIT(Appeals) further observed that the profit motive cannot be denied considering the business activities of the assessee. The CIT(Appeals) dismissed the appeals of the assessee for both the AYs. Aggrieved by the order of the CIT(Appeals), the assessee has come in second appeal before the Tribunal assailing the findings of the CIT(Appeals). 3. Shri M.Narayanan, appearing on behalf of the assessee submitted that, the CIT(Appeals) has dis-allowed deduction u/s.80P(2)(a)(i) on the ground that the assessee has extended credit facilities to associate Members i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yed for the dismissal of the appeals of the assessee. 5. We have heard the submissions made by the representatives of both the sides and have perused the orders of the authorities below as well as the decisions of the co-ordinate bench of the Tribunal relied upon by the ld.AR of the assessee. In both the appeals, the assessee has impugned the findings of the CIT(Appeals) for rejecting the claim of deduction u/s.80P(2)(a)(i) to the assessee. The CIT(Appeals) in his order has held that the assessee-society is not a co-operative bank, therefore, the provisions of section 80(P)(4) are not attracted. However, the CIT(Appeals) has denied the deduction on the ground that the assessee has extended credit facilities to Class-B Members, who are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been allowed to be availed by B class nominal members whose liability is limited, at the best; to the extent of loan repayable instead of A class members who have voting rights and dividend claim, and also that the latter members are jointly and severely liable. In this backdrop, when we peruse the relevant provisions of the State Co-operative Societies Act, 1983, governing the assessee-Society, it is evident from the definition of member u/s 2(16) that the same includes an associate member u/s 2(6) appended therein. In other words, the nominal members also enjoy statutory recognition as per the Act. The net result is that once the nominal members or non-voting members are themselves included in the definition of members , ..... X X X X Extracts X X X X X X X X Extracts X X X X
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