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2015 (9) TMI 1540 - ITAT CHENNAIEntitlement to claim benefit of deduction under section 80P - assessee is providing credit facilities to Class ‘B’ Members or associate Members who are not recognized as Members of the society - Held that:- We find that the issue of whether the assessee is entitled for deduction under section 80P(2) was considered in assessee’s own case for the assessment years 2007-08 to 2009-10 and held that assessee is entitled to claim benefit under section 80P(2) CIT(Appeals) has denied deduction to the assessee only for the reason, that credit facilities have been extended to a particular class of Members, who are not normal Members of the society. We do not agree with the CIT(Appeals) on the issue. As in case M/s. SL(SPL) 151, Karkudalpatty Primary Agricultural Co-operative Credit Society Ltd. Versus The Income Tax Officer [2014 (5) TMI 556 - ITAT CHENNAI] wherein held as 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’, they satisfy the relevant condition imposed by the legislature u/s 80P(2)(a)(i). Under the very provision that for the purpose of impugned deduction, it is irrelevant so far as classification of the members in ‘A’ or ‘B’ category is concerned. We follow the same and accept contentions of the assessee - Decided in favour of assessee
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