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2017 (4) TMI 181 - HC - Income TaxDeduction under section 80P(2)(a)(i) - Held that:- The appellate authority, namely, the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal has clearly perceived that the assessee is not a co-operative bank and that the activities of the bank are in the nature of accepting deposits, advancing loans, etc., carried on by the assessee, but are confined to its members only and that too in a particular geographical area. Therefore, the respondent society is eligible for deduction under section 80P(2)(a)(i) of the Act. The contention of the appellant that the members of the assessee-society are not entitled to receive any dividend or having any voting right or no right to participate in the general administration or to attend any meeting, etc., because they are admitted as associate member for availing of loan only and was also charging a higher rate of interest at the rate of 14 per cent., is not a ground to deny the exemption granted under section 80P(2)(a)(i) of the Act. - Decided in favour of assessee
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