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2021 (3) TMI 984 - AT - Income TaxDisallowance of claim of deduction u/s. 80P(2)(a)(i) - CIT(A) held that the assessee is a co-operative society, eligible for claim of deduction u/s. 80P(2)(a)(i) with regard to income derived from business of providing credit facilities to its members but income earned from persons other than regular members of the assessee was not eligible for deduction u/s. 80P(2)(a)(i) - HELD THAT:- Referring to Section 18 of the Karnataka Co-operative Societies Act, 1959 as amended with effect from 01.06.2014, the Co-operative Societies registered under the Karnataka Cooperative Societies Act, 1959 is allowed to do have nominal/associate members up to 15% for its total membership. In the instant case, the assessee has not provided the details sought by the CIT(A), namely, copies of bye-laws, details of investments, details of income derived from non-members, etc. The Hon'ble Apex Court in the case of The Mavilayi Service Cooperative Bank Ltd. & Ors. [2021 (1) TMI 488 - SUPREME COURT] had clearly stated that when assessee is accepting deposits and providing credit facilities to non-members, the respective State Coo-operative Act will have application. Since the assessee has not provided the details, in the interest of justice and equity one more opportunity should be granted to the assessee to provide the same. Issues raised in this appeal are restored to the files of the CIT(A). Appeal filed by the assessee is allowed for statistical purposes.
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