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TMI BlogNavigating the Complexities of Section 80P Deductions for Cooperative SocietiesX X X X Extracts X X X X X X X X Extracts X X X X ..... t-assessees, categorized as primary agricultural credit cooperative societies (PACS), for deductions under section 80P of the Income Tax Act, 1961. This section pertains specifically to deductions available to cooperative societies. The order is comprehensive and deals with various legal and factual intricacies. The analysis here will delve into the nuances of this order, providing a deep explorat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in this clause, provided to its members. Issues Raised in the Appeals * The percentage of advances made for non-agricultural purposes. * The nature of membership in the societies and the rights of different classes of members. * Absence of a specific clause in the bye-laws restricting the admission of other cooperative societies as members. * The paid-up share capital exceeding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitlement to surplus) and other classes (nominal members) is vital. The Tribunal's interpretation suggests that extending loans to non-Class A members does not necessarily disqualify the societies from the deduction, a significant point for cooperative societies with diverse membership structures. Banking Regulation Act, 1949, and its Implications The Tribunal extensively refers to the Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of Bye-Laws and Paid-Up Share Capital The Tribunal examines the bye-laws concerning membership and the paid-up share capital of the societies. The bye-laws' compatibility with the statutory requirements under the Kerala Act and the Income Tax Act is a determinant factor in the eligibility for deduction. Concluding Observations Eligibility for Deductions Based on the detailed analysis, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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