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2015 (10) TMI 1380 - AT - Income TaxDeduction under section 80P(2)(a)(i) denied - CIT(A) held that the assessee are not engaged in the business of providing credit facilities to its members only but extending loans to class "B" members who are all nominal members and not recognising them as members for audit, hence does not qualify for deduction - Held that:- A perusal of definition of the term 'member' clearly shows that 'member' includes 'associate member'. The reference of class 'B' members by the Commissioner of Income-tax (Appeals) is with respect to associate members. The Commissioner of Income-tax (Appeals) has denied deduction to the assessees 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 Commissioner of Income-tax (Appeals) on the issue. The authorities under the Act cannot go beyond their jurisdiction and make classification within a classification of members to deny the benefit of deduction. The co-ordinate Bench of the Tribunal in the case of SL(SPL) 151, Karkudalpatty Primary Agricultural Co-operative Credit Society Ltd. v. ITO [2014 (5) TMI 556 - ITAT CHENNAI] has held held 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. - Decided in favour of assessee.
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