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TMI Blog2022 (4) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... iolation of the Co-op societies Act and co-op society rules as the principle of mutuali ty is absent, whereas as per facts and circumstances the addition should not be made. 2. The brief facts of the case are that, the assessee is a mutually aided cooperative society engaged in the business of banking or providing the credit facility to their members and the activities are confined to members only who are making deposits and availing loans and surplus if any is distributed among the members only. The assessee has filed the return of income for the A.Y 2016-17 on 17.10.2017 with a total income of Rs.Nil after claiming deduction U/sec 80P of the Act and the return of income was processed u/s 143(1) of the Act. Subsequently, the case was sele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee The penalty proceedings u/s 271(1)(c) of the Act is hereby also initiated for filing inaccurate particulars of income. 3. The A.O has passed the order u/s 143(3) of the Act dated 21.12.2018 with the assessed income of Rs. 30,64,326/- Aggrieved by the order, the assessee has filed an appeal before the CIT(A). Whereas, the CIT(A) considered the grounds of appeal, submissions of the assessee and findings of the A.O and was not satisfied with the explanations and relied on the decision of the Hon'ble Supreme Court on the disputed issue and dismissed the appeal. Aggrieved by the CIT(A)order, the assessee has filed an appeal before the Honble Tribunal. 4. We heard the Ld. DR submissions and perused the material on record as none ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iz. (1) ordinary members and (2) nominal members who made deposits with assessee for obtaining loans, who were not members in real sense and depositors and borrowers were quite distinct and hence the Hon'ble Apex Court has held that, in reality, such activity of assessee was that of finance business and could not be termed as cooperative society. 8.3 Therefdore, respectfully following the decision of the Hon'ble Apex Court in the case of Citizen Co-operative Society Ltd Vs. ACIT (Supra) disallowance of deduction of Rs. 30,64,326/- u/s 80P of the Act by AO is upheld. 9. In the sum, the appeal of the appellant is dismissed. 5. We considering the facts, circumstances and the ratio of the Hon'ble Supreme Court decision do not find any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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