TMI Blog2019 (11) TMI 1565X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities to nominal / associate members far exceeding 15% of its total business. A.O. has come to a categorical finding that regular members is less than 15%, whereas, non-members, i.e., nominal / associate members are exceeding 87% of the total members. This categorical finding of the A.O. has not been dispelled by the assessee before the Tribunal. Therefore, there is a clear violation of provisions dealing with non-members as per Karnataka Co-operative Societies Act, 1959. Therefore, the ratio of the judgment of the Hon ble Supreme Court in the case of Citizen Co-operative Society [ 2017 (8) TMI 536 - SUPREME COURT] is clearly applicable to the facts of the instant case Assessee could not controvert the categorical finding of CIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) erred in law and on facts in not allowing the interest income of ₹ 11,48,977/- on investments as deduction u/s. 80P(2)(a)(i) of the Act. 6. That the learned Commissioner of Income-Tax (Appeals) erred in law and on facts in not allowing the interest income of ₹ 11,48,977/- on investments as deduction u/s. 80P(2)(d) of the Act. Each of the above grounds is without prejudice to one another, the appellant seeks the leave of the Hon'ble Income Tax Appellate Tribunal, Bangalore to add, delete, amend or otherwise modify each or any of the grounds of appeal either before or at the time of hearing this appeal. 3. Learned AR of the assessee submitted that similar issue was decided by the tribunal in the case of M/s Kodavo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 of the Karnataka Co Operative Societies Act, 1959 w.e.f. 06.09.2014, the number of associate members in any co operative society shall not exceed 15% of the total regular members. He pointed that in A. Y. 2016 17 of that case, the tribunal noted that the number of Associate Members were in excess of 15% of total regular members and in the light of this factual position, the tribunal in that case in A. Y. 2016 17 held that the Judgment of Hon ble Apex Court rendered in the case of The Citizen Co Operative Society Ltd. vs. ACIT, 297 ITR 1 is applicable in which it was held that if the assessee co operative society is violating the Co Operative Society Act under which it is formed, than such a society cannot be termed as a co operative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee can have associate members up to 261 being 15% of 1738 but the present assessee is having 384 associate members and this is the violation committed by the present assessee of Karnataka Co Operative Societies Act, 1959 and therefore, this tribunal order for A. Y. 2016 17 is squarely applicable in the present case and therefore, the appeal of the assessee should be dismissed. Learned AR of the assessee could not point out any factual mistake in this categorical finding of CIT (A). 5. I have considered the rival submissions. I find that the tribunal order cited by the learned DR of the revenue is squarely applicable in the present case because learned AR of the assessee could not controvert the categorical finding of CIT (A) regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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