TMI Blog2014 (5) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... t, we have held that no such distinction could be drawn for the purpose of deduction u/s 80P(2)(a)(i) of the Act. We have also held that being a deduction provision, there is no scope for further classification within members. On being pointed out, the Revenue has failed to draw any distinction on facts. - Decided in favour of assessee - I.T.A.Nos. 402 to 417/Mds/2014 - - - Dated:- 8-5-2014 - DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI S. S. GODARA, JUDICIAL MEMBER For the Petitioner : Shri M. Narayanan, Retd. Addl. CIT For the Respondent : Shri Hari Rao, JCIT ORDER PER BENCH: This batch of sixteen appeals filed by different assessees is directed against separate orders of the Commissioner of Income-tax (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the tune of ` 75,578/- by observing that since credit facilities had been advanced to A as well as B class members, the claim is hit by section 80P(2)(a)(i) of the Act. Per CIT(A), only A class members enjoy voting and administrative rights and liabilities as per the State Co-operative Societies Act and not the associate/nominal or B class members. Therefore, the assessee is in appeal by raising the following grounds: 1.The order of the learned Commissioner of Income Tax (Appeals) in denying the deduction u/s 80P and making an enhancement is bad in law and against the facts and circumstances of the case. 2. The finding of the learned Commissioner of Income Tax (Appeals) that Class B are not recognised as members i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time of hearing it may be held that (1) the assessee is entitled to the deduction u/s 80P (2) its interest earned on providing credit facility to its associate members falls u/s 80P(2)(a)(i) and (3) that the amounts set apart to outside funds as per section 72 may be directed to be taken out of the purview of the income of the assessee in the interests of justice. 5. We have heard both parties and gone through the case file. The CIT(A) s only ground while denying claim of deduction is that the assessee has advanced loans to even the nominal/associate or B class members which is hit by section 80P(2)(a)(i). On this, the assessee has produced before us an order dated 17.3.2014 in case of M/s SL(SPL) 151, Karkudalpatty Primary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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