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2021 (5) TMI 406 - HC - Income TaxDeductions u/s 80P(2)(a) (i) - assessee with its lending and borrowing involving non-members, whether the society still retains its character as cooperative society or whether it should be treated as a cooperative bank, disentitled to the benefits under section 80P(2)(a)(i)? - HELD THAT:- First, the Assessee has all these years continued with the same set of activities. And this has been accepted by AO. On earlier occasions, until the Assessment Year we are considering (2012-13), this Court has consistently declared that the Assessee continues to be a cooperative credit society entitled to the benefits under section 80P of the IT Act. We see no reason for the AO to take a different stand this Assessment Year. That apart, the Apex Court has put a quietus to the controversy whether the Revenue could go behind the registration certificate of cooperative society and examine its activities to determine its true nature, if any. In Mavilayi [2019 (9) TMI 782 - SC ORDER] the enunciation of law is emphatic: the authorities under the IT Act cannot go behind the certificate. Here, indisputably, all the Assessee have been registered as cooperative credit societies. Banking, as understood by the Revenue, has never been its core activity. Their accepting deposits from non-members does not disqualify them from claiming benefits under section 80P of the IT Act. - Decided in favour of assessee.
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