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2020 (7) TMI 664 - HC - Income TaxDeduction u/s 80P - Assessee is a Cooperative Society carrying on business of Banking - whether the assessee was entitled to deduction under Section 80P(2)(a)(i) as the activity carried on by the assessee being a finance business, it cannot be termed as a Cooperative Society? - HELD THAT:- As decided in M/S. S-1308 AMMAPET PRIMARY AGRICULTURAL COOPERATIVE BANK LTD. [2019 (1) TMI 116 - MADRAS HIGH COURT]definitions of the expressions 'members' and 'associate member' under the TNCS Act and held that an 'associate member' is also a 'member' in terms of Section 2(16) of the TNCS Act. Furthermore, the Assessing Officer himself found that the associate members are also admitted as members of the society AO fell into an error in not granting any relief to the assessee society, which was rightly granted by the CIT (A) as confirmed by the Tribunal. In addition to that, the Assessing Officer has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub-Section (4) of Section 80P of the Act, the society has an area of operation, operates within the taluk and will provide long term credit for agricultural and rural development activities as well. The CIT (A) rightly granted the relief to the assessee as confirmed by the Tribunal. We do not find any good ground to entertain these appeals. - Decided in favour of the assessee.
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