9911796707
TMI Blog2021 (9) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the facts and circumstances of the case. 2. That the order of the learned Commissioner of Income-tax (Appeals) erred in law and on facts in confirming the disallowance of Rs. 14,59,623/- claimed as deduction u/s 80P(2)(a)(i) of the Act. 3. That the order of the learned Commissioner of Income-tax (Appeals) denied the deduction u/s 80P(2)(a)(i) of the Act on the only ground that the appellant deals with nominal and associate members. 4. That the order of the learned Commissioner of Income-tax (Appeals) ought to have appreciated that the appellant is registered as Co-operative Society under Karnataka State Cooperative Societies Act, 1959 and the said Act allows the appellant to admit nominal and associate members. 5. That the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: The assessee is a co-operative society, registered under the Karnataka Co-operative Societies Act, 1959. It is engaged in the business of providing credit facilities to its members. For the assessment year 2016-2017, the return of income was filed on 31.05.2017 declaring `NIL' income after claiming deduction u/s 80P(2) of the I.T.Act amounting to Rs. 14,59,623. The return of income was selected for scrutiny. The Assessing Officer noticed that the assessee has violated the principle of mutuality and denied the benefit of deduction u/s 80P of the I.T.Act in view of the judgment of the Hon'ble Apex Court in the case of The Citizen Co-operative Society Ltd. v. ACIT reported in 397 ITR 1 (SC). The Assessing Officer also denied the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Hon'ble Supreme Court in M/s.Mavilayi Service Co-operative Bank Ltd. v. CIT 431 ITR 1 since the Hon'ble Surpeme Court has settled all the issues related to deduction of S.80P(2)(a)(i) by a Co-operative Society dealing with regular members, nominal members and associate members. 3. In the present case, the Revenue is relying on the decision of this Bangalore Tribunal in M/s.Athmashakthi Multipurpose Co-operative Society v. ITO (ITA No.1220 & 1221/Bang/2019. However, this decision is also rendered before the decision of Hon'ble Supreme Court in M/s.Mavilayi Service Co-operative Bank Ltd. v. CIT 431 ITR 1. In view of the above submissions, it is prayed that the Hon'ble Tribunal be pleased to remand the case to the files of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Mavilay8i Service Co-operative Bank Ltd. v. CIT (2021) 123 taxmann.com 161 (SC) has held that the expression "Members" is not defined in the Income-tax Act. Hence, it is necessary to construe the expression "Members" in section 80P(2)(a)(i) of the Act in the light of definition of that expression as contained in the concerned co-operative societies Act. In view of this, the facts are to be examined in the light of principles laid down by the Hon'ble Supreme Court in Mavilayi Service Cooperative Bank Ltd. (surpa). Accordingly, we remit this issue of deduction u/s 80P(2)(a)(i) of the Act to the files of Ld.AO to examine the same de novo in the light of the above judgment. Needless to say that proper opportunity of being heard is to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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