TMI Blog2014 (6) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... uded in the definition of ‘members’, they satisfy the relevant condition imposed by the legislature u/s 80P(2)(a)(i) - the objections of the Revenue that the ‘members’ defined in sub-clause(i) of section 80P(2) should only include voting members would amount to a classification within classification which is beyond the purview of tax statute - unless provided specifically by the legislature - under the very provision that for the purpose of impugned deduction, it is irrelevant so far as classification of the members in ‘A’ or ‘B’ category is concerned - the assessees are eligible to claim benefit of deduction u/s.80P(2)(a)(i) of the Act – Decided in favour of Assessee. - I.T.A. No. 444/Mds/2014, 445/Mds/2014 446/Mds/2014 447/Mds/2014 448/M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable to co-operative societies engaged in the business of providing credit facilities to its Members. But the assessees are providing credit facilities to non-Members i.e., Class B Members or associate Members who are not recognized as Members of the society. Therefore, the assessees are not eligible to claim deduction u/s.80P(2)(a)(i) of the Act. The CIT(Appeals) dismissed the appeals of the assessees. Aggrieved by the order of the CIT(Appeals), the assessees have come in second appeal before the Tribunal assailing the findings of the CIT(Appeals). 3. Shri T.Vasudevan, appearing on behalf of the assessees submitted that, the CIT(Appeals) has dis-allowed deduction u/s.80P(2)(a)(i) on the ground that the assessees have extended cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessees. In all the appeals, the assessees have impugned the findings of the CIT(Appeals) for rejecting the claim of deduction u/s.80P(2)(a)(i). The CIT(Appeals) in his order has held that the assessee-societies are not co-operative banks, therefore, the provisions of section 80(P)(4) are not attracted. However, the CIT(Appeals) has denied the deduction on the ground that the assessees have extended credit facilities to Class-B Members, who are not regular Members of the Society and thus the assessees are not entitled for claiming deduction u/s.80P(2)(a)(i). 6. Section 2(16) of the Societies Act, 1983 defines Member as under: Member means a person joining in the application for the registration of Society and a person admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 interpreted liberally. In our considered opinion, the objections of the Revenue that the members defined in sub-clause(i) of section 80P(2) sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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