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2022 (11) TMI 587 - AT - Income TaxDisallowing deduction u/s 80P(2)(a)(i) - income earned from Associate members/ Nominal members - Whether nominal members are treated on par with the members is to be decided with reference to the provisions of State Legislation under which this appellant society was formed and the bye-laws governing the appellant society? - HELD THAT:- Lower authorities had failed to decide the issue with reference to the provisions of the Statute under which the appellant society was formed and the bye-laws of the appellant society. Therefore,we remit the matter to the file of the AO to decide the issue whether a nominal member also falls under the category of a “member” as provided in the Karnataka Co-operative Societies Act, 1959 and bye-laws of the society, if so, allow the exemption u/s 80P(2)(a)(i) as held by the Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd [2021 (1) TMI 488 - SUPREME COURT]. Thus, the matter stands remanded to the file of the Assessing Officer for fresh adjudication in accordance with law. Hence, the grounds of appeal raised by the appellant stand partly allowed for statistical purposes.
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