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2019 (9) TMI 635 - HC - Income TaxDeduction u/s 80P(4) - assessee-society is registered under the provisions of the TNCS Act - whether activity of the appellant is that of finance business and cannot be termed as cooperative society? - definition of the word 'members' - HELD THAT:- The substantial question of law framed for consideration was considered by a Division Bench of this Court in the case of The Principal Commissioner of Income Tax, Salem vs. M/s.S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. [2019 (1) TMI 116 - MADRAS HIGH COURT] where held Definitions of the expressions 'members' and 'associate member' under the TNCS Act 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 AO 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 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. CIT (A) rightly granted the relief to the assessee as confirmed by the Tribunal. - Decided against the Revenue.
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