TMI Blog2023 (6) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT NAGPUR] has decided the issue in favour of the assessee held that definition of `member given in section 2(19) of the Maharashtra Act takes within its sweep even a nominal member and there is no distinction between a duly registered member and nominal member. In view of the above discussion, we overturn the impugned order and direct to grant deduction u/s 80P(2)(a)(i), as claimed by the assessee. Non-granting of deduction u/s. 80P in respect of Electricity Commission - assessee carried out the activity of collection of electricity bills from customers and then depositing it with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) - HELD THAT:- It is seen that this issue has been decided in favour of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,20,022/- from its nominal members and claimed the same as deductible u/s. 80P. The AO did not allow the deduction on the net interest income of Rs. 3,90,600/-, which action came to be countenanced in the first appeal. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. I have heard the rival submissions and gone through the relevant material on record. It is seen that the extant issue of granting deduction on the interest income received from nominal members is no more res integra in view of several orders passed by the Tribunal holding the same in favour of the assessee. The Tribunal in The Vainganga Nagari Sahakari Pat Sanstha Ltd. Vs. ITO (ITA No.49/Nag/2020) has decided the issue in favour of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nominal Members from whom interest income was earned, there can be no doubt whatsoever that the deduction u/s 80P(2)(a)(i) has to be allowed. The Department has heavily relied on the judgment of Hon'ble Supreme Court in the case of Citizen Co-operative Society Ltd. vs. ACIT (supra). That was a case in which Andhra Pradesh Mutually Aided Co-operative Society Act, 1995 was under consideration, which did not admit `Nominal Member within the ambit of the term Member . Recently, the Hon'ble Supreme Court in Mavilayi Service Co-Operative Bank Ltd. vs. CIT (2021) 123 taxmann.com 161 (SC) considered its earlier judgment in Citizen Cooperative Society Ltd. vs. ACIT (supra) vide para 46 of its order. Taking note of the fact that the Citizen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance fees was not pressed by the ld. AR. The same is, therefore, dismissed as not pressed. 7. The third issue is about non-granting of deduction u/s. 80P in respect of Electricity Commission. The assessee carried out the activity of collection of electricity bills from customers and then depositing it with the Maharashtra State Electricity Distribution Company Limited (MSEDCL). For doing this activity, it was awarded commission of Rs. 70,763/-, which was not accorded the deduction u/s. 80P of the Act by the AO as well as the ld. CIT(A). 8. It is seen that this issue has been decided in favour of the assessee by the Tribunal in its order dt. 14-03-2022 in Bhagyalaxmi Nagri Sahakari Patsanstha Meryadit Vs. ITO (ITA Nos. 705 and 706/P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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