TMI Blog2019 (1) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... admit nominal members and the assessee’s claims that the amendments of 2014 and 2016 to the Karnataka Co-operative Societies Act, 1959 refers only to associate members and therefore would not negatively affect the allowability of the assessee’s claim for deduction u/s 80P(a)(i) of the Act. In these circumstances, as narrated above the authorities below have not examined or considered whether the amendments to section 18 of the Karnataka Co-operative Societies Act, 1959 impacts the claim of deduction u/s 80 - set aside the orders of the authorities below and remand the matter of allowability of the assessee’s claim for deduction u/s 80P of the Act to the file of the AO for denovo examination and consideration and adjudication as per law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the learned CIT(A) further held that since the nominal members of the society exceed 15% of the regular members, it is a violation of Karnataka State Co-operative Societies Act, 1959 and confirmed the AO s disallowance of the assessee s claim for deduction u/s 80P(2)(a)(i) of the Act. 3. Aggrieved by the order of CIT(A), Belgaum dated 18.09.2018 for Assessment Year 2015-16, the assessee has preferred this appeal before the Tribunal, wherein it has raised the following grounds: 1. That the order of the learned Commissioner of Income tax in so far it is prejudicial to interests of the appellant, is bad and erroneous in law and against the facts and circumstances of the case. 2. That the learned Commissioner of Income Tax (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stinguishable since Karnataka Co-operative Societies Act, 1959 permits a Co-operative society to admit nominal members, the CIT(A) did not deal with this contention, but rather went on to hold that the total number of nominal members and associate members cannot exceed 15% of total members. 4.1.2 As per the information on record, the details of regular members, nominal members, etc., furnished by the assessee are as under: Particulars No. of Members Regular Members 774 Nominal Members 309 Total 1083 15% of Regular Members 116 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieties Act, 1959 permits a Co-operative Society to admit nominal members and the assessee s claims that the amendments of 2014 and 2016 to the Karnataka Co-operative Societies Act, 1959 refers only to associate members and therefore would not negatively affect the allowability of the assessee s claim for deduction u/s 80P(a)(i) of the Act. In these circumstances, as narrated above, I find that the authorities below have not examined or considered whether the amendments to section 18 of the Karnataka Co-operative Societies Act, 1959 impacts the claim of deduction u/s 80P of the Act. I, therefore, deem it appropriate to set aside the orders of the authorities below and remand the matter of allowability of the assessee s claim for deduction u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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