TMI Blog2021 (1) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... case of The Mavilayi Service Co-operative Bank Ltd. [ 2019 (3) TMI 1580 - KERALA HIGH COURT] . The Hon'ble Supreme Court has also further explained the decision in the case of Citizen Co-operative Society Ltd. [ 2017 (8) TMI 536 - SUPREME COURT] in so far as the deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication. In the circumstances in respectful obedience to the principles laid down by the Hon'ble Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd.[ 2021 (1) TMI 488 - SUPREME COURT] the AO is directed to grant the assessee the benefit of deduction under Section 80P as claimed. Appeal filed by the assessee is allowed. - ITA No. 38 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in Civil Appeal Nos. 7343 to 7350 of 2019 dated 12th January, 2021 wherein the Hon'ble Supreme Court in paras 45 to 48 had held as under: - 45. To sum up, therefore, the ratio decidendi of Citizen Cooperative Society Ltd. (supra), must be given effect to. Section 80P of the IT Act, being a benevolent provision enacted by Parliament to encourage and promote the credit of the co-operative sector in general must be read liberally and reasonably, and if there is ambiguity, in favour of the assessee. A deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication, as is sought to be done by the Revenue in the present case by adding the word agricu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... embers in Section 80-P(2)(a)(i) must, therefore, be construed in the context of the provisions of the law enacted by the State Legislature under which the cooperative society claiming exemption has been formed. It is, therefore, necessary to construe the expression members in Section 80-P(2)(a)(i) of the Act in the light of the definition of that expression as contained in Section 2(n) of the Cooperative Societies Act. The said provision reads as under: 2. (n) Member means a person who joined in the application for registration of a society or a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws for the time being in force but a reference to members a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned Full Bench judgment is set aside. The appeals and all pending applications are disposed of accordingly. These appeals are directed to be placed before appropriate benches of the Kerala High Court for disposal on merits in the light of this judgment. It was the submission that in view of the decision of the Hon'ble Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd. (supra) the assessee is now entitled to deduction under Section 80P of the Act. 6. In reply the learned D.R. vehemently supported the orders of the Assessing Officer and the learned CIT(A). It was the submission that the assessee has also violated the principles laid down by the Hon'ble Supreme Court in the case of Citizen Co-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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