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2012 (8) TMI 1172 - AT - Income TaxDeduction for Co-operative Society u/s 80P(2)(a)(i). - It was contended that Assessee, a cooperative society derives income from providing credit facilities to its relatives. Also, after insertion of 80P(4), deduction is only available to primary agricultural credit society and primary cooperative agricultural and rural development bank. Hence, not liable for deduction. HELD THAT:- The assessee society is providing credit facilities to its members only and not to the public at large, therefore, the case of the assessee is covered under sec. 80P(2) and not by 80P(4). It is undisputed fact that the Assessee is registered as a credit cooperative society. Also, the objects of the society are fortified by the letter of the President as per which it has been specifically mentioned that the society is restricted to employees of BHEL and no outsider is permitted to become a member or shareholder of depositor or lender or borrower. The finding of the AO is contrary to the facts. Since the assessee society is providing credit facilities to its members only, therefore, clearly entitled to deduction u/s 80P(2) of the Act - Decision in Favour of Assessee.
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