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2014 (6) TMI 706 - AT - Income TaxDenial of deduction u/s 80P(2)(a)(i) of the Act – Loan for non-agricultural activities – Scope of term Member u/s 2(16) of Societies Act, 1983 – Held that:- The authorities 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 also enjoy statutory recognition as per the Act - 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) - the objections of the Revenue that the ‘members’ defined in sub-clause(i) of section 80P(2) should only include voting members would amount to a classification within classification which is beyond the purview of tax statute - unless provided specifically by the legislature - 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 - the assessees are eligible to claim benefit of deduction u/s.80P(2)(a)(i) of the Act – Decided in favour of Assessee.
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