9911796707
TMI Blog2021 (3) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... rief facts of the case are as follow: The assessee is a co-operative society registered under the Karnataka Co-operative Societies Act, 1959. For the assessment year 2013-2014, the return of income was filed on 26.09.2013 declaring 'Nil' income, after claiming deduction u/s. 80P(2)(a)(i) of the I.T. Act amounting to Rs. 34,70,813. The assessment was taken up for scrutiny by issuance of notice u/s. 143(2) of the I.T. Act. The assessment was passed u/s. 143(2) of the I.T. Act vide order dated 29.12.2015. The Assessing Officer denied the claim of deduction u/s. 80P(2)(a)(i) of the I.T. Act for the reason that assessee was primarily doing the business of banking and was essentially a co-operative bank. Therefore, in view of the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) in providing necessary details, such as, copies of bye-laws, details of investment and deposits, details of income earned from non-members, etc. The learned Standing Counsel relied on the orders of the Bangalore Benches of the Tribunal in the case of M/s. Athmashakthi Multipurpose Co-operative Society Ltd. v. ITO [ITA Nos. 1220 & 1221/Bang/2019 - order dated 18.10.2019] and in the case of M/s. Vikasha Vividhoddesha Sahakara Sangha Niyamitha v. ITO [ITA No. 1424/Bang/2019 - order dated 08.11.2019]. 7. I have heard rival submissions and perused the material on record. Section 18 of the Karnataka Co-operative Societies Act, 1959, defines nominal or associate members as under:- "Nominal or Associate members : Notwithstanding anything c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red under the Karnataka Cooperative Societies Act, 1959 is allowed to do have nominal/associate members up to 15% for its total membership. In the instant case, the assessee has not provided the details sought by the CIT(A), namely, copies of bye-laws, details of investments, details of income derived from non-members, etc. The Hon'ble Apex Court in the case of The Mavilayi Service Cooperative Bank Ltd. & Ors. (supra) had clearly stated that when assessee is accepting deposits and providing credit facilities to non-members, the respective State Coo-operative Act will have application. Since the assessee has not provided the details, in the interest of justice and equity, I am of the view that one more opportunity should be granted to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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