TMI Blog2014 (5) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... elying upon CIT vs Punjab State Co-operative bank Ltd [2008 (3) TMI 45 - HIGH COURT PUNJAB AND HARYANA] - under the provision that for the purpose of deduction, it is irrelevant so far as classification of the members in ‘A’ or ‘B’ category is concerned – Decided partly in favour of Assessee. - I.T.A.Nos.292/Mds/2014, I.T.A.Nos.293/Mds/2014 - - - Dated:- 17-3-2014 - Dr. O. K. Narayanan And Shri S. S. Godara,JJ. For the Appellant : Shri T. Vasudevan, Advocate For the Respondent : Shri Guru Bhashyam, JCIT ORDER Per S. S. Godara, Judicial Member These appeals filed by different assessees for assessment year 2008-09, are directed against separate orders of Commissioner of Income-tax (Appeals)Salem dated 31.12.2013, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2)(a)(i) and prays for upholding the same. 5. The assessee is a primary agricultural co-operative credit society; stated to be providing credit facilities to its members. It has been set up and governed under the Tamilnadu State Co-operative Societies Act, 1983. Coming to the impugned assessment year, the assessee had filed its return on 30.10.2008 admitting income of Rs. NIL and claimed deduction u/s 80P(2) of Rs. 31,10,685/- which was summarily processed. Thereafter, the Assessing Officer framed scrutiny assessment. In the order dated 1.7.2010, he took notice of assessee s loans for jewellery, deposit, consumer, KVP, microcredit, SHC, share capital, short term and KCC etc. with variable interest rates to hold that its deduction cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... members who have voting rights and dividend claim, and also that the latter members are jointly and severely liable. In this backdrop, when we peruse the relevant provisions of the State Co-operative Societies Act, 1983, governing the assessee-society, it is evident from the definition of member u/s 2(16) that the same includes an associate member u/s 2(6) appended therein. In other words, the nominal members also enjoy statutory recognition as per the Act. The net result is that once the nominal members or non-voting members are themselves included in the definition of members , they satisfy the relevant condition imposed by the legislature u/s 80P(2)(a)(i). We make it clear that we are dealing with a deduction provision to be in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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