TMI Blog2021 (2) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... ermore, the Assessing Officer himself found that the associate members are also admitted as members of the society. In such circumstances, the Assessing Officer fell into an error in not granting any relief to the assessee society, which was rightly granted by the CIT (A) as confirmed by the Tribunal. In addition to that, the Assessing Officer has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub-Section (4) of Section 80P of the Act, the society has an area of operation, operates within the taluk and will provide long term credit for agricultural and rural development activities as well. The CIT (A) rightly granted the relief to the assessee as conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Section 80P(4) is applicable to the assessee? And v. Whether, under the facts and circumstances and in law, the Tribunal was right in holding that principles of mutuality is not present in the appellant's case and therefore, the appellant is not eligible for deduction under Section 80P(2)(a)(i)? 3. We have heard Mr.N.V.Balaji, learned counsel appearing for the appellant/assessee and Mrs.V.Pushpa, learned Junior Standing Counsel accepting notice for the respondent/Revenue. 4. As against the common order passed by the Tribunal in both the main appeal as well as in the cross objection, the assessee filed TCA.Nos.170 and 171 of 2020 and by a common judgment dated 17.7.2020 , to which, one of us (TSSJ) was a party, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The case on hand is also an identical matter. The only difference being, the assessee lost before the Tribunal and therefore, the assessee is before us by way of these appeals. For better appreciation, we refer to the relevant paragraphs in the case of Ammapet Primary Agricultural Cooperative Bank Ltd., (cited supra): '12.Admittedly, the assessee society is registered under the provisions of the TNCS Act. It defines the word 'members' under Section 2(16) to mean a person joining in the application for the registration of society and a person admitted to the membership after registration in accordance with the provisions of the Act, the Rules framed thereunder and the By-laws and includes an associate member. The e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society is a primary agricultural cooperative credit society and therefore, would be entitled to the benefit of Section 80P of the Act. 15. Further, for the assessment year 2014-15, the decision in the case of Citizen Co-operative Society Limited was relied upon by the Revenue before the Tribunal, which, in paragraph 6.1 of its order dated 28.2.2018 for the assessment year 2014-15, extracted the operative portion of that judgment. In that case, the Hon'ble Supreme Court found that the society carried on certain activities, which were contrary to the provisions of the Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995 and that they accepted deposits from third parties, who were not members in the real sense and were usin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted by the CIT (A) as confirmed by the Tribunal. In addition to that, the Assessing Officer has not pointed out that loans have been disbursed to all and sundry in terms of the provisions of the TNCS Act and in terms of Clause (b) to Sub- Section (4) of Section 80P of the Act, the society has an area of operation, operates within the taluk and will provide long term credit for agricultural and rural development activities as well. The CIT (A) rightly granted the relief to the assessee as confirmed by the Tribunal. We do not find any good ground to entertain these appeals. 18. Accordingly, the above tax case appeals are dismissed. The substantial questions of law framed are answered against the Revenue.' 6. We are convinced th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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