TMI Blog2024 (5) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... ee/s, satisfying the primary condition of s. 2(19) of the Act defining a society, is, thus, a cooperative society, a pre-requisite for deduction u/s. 80P(1). The resolution of the dispute as to whether the assessee is therefore eligible for deduction u/s. 80P(1) r/w s. 80P(2)(a)(i) and, where so, its extent, thus rests solely on the assessee being, or not being, a co-operative bank, a term again defined under BRA, which stands adopted for the purpose of s. 80P, determining the issue. Copy of the bye-laws, only a certified translated copy of which, in full, can be taken cognizance of and regarded as a part of the record, is not on record. As also noted by the Tribunal in it s orders afore-referred, what value the restriction on the area for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed by Ms. Ravindran, the learned counsel for the assessee, that the assessee s claim is fully covered by the decision by the Hon'ble Apex Court in Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC). She was, however, on a query by the Bench during hearing, unable to take us through the bye-laws; it s copy being not on record, though would emphasize that the assessee-society is confined in it s operations to a particular area, only residents of which could become it s members, even if nominal, duly permitted by it s governing Act, i.e., the Kerala Co-operative Societies Act, 1969 (the Kerala Act), under which the assessee is registered as a Primary Agricultural Credit Society (PACS). This assumes relevance as this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her in complete agreement with that under the Kerala Act), the appellant is not a PACS. So, however, as explained in Mavilayi SCB Ltd. (supra), that would have no bearing on it s claim for deduction u/s. 80P(2)(a)(i), i.e., as long as it is not a co-operative bank , a term again defined in BRA, precluding thus section 80P(4). As further explained by the Tribunal per it s orders afore-referred, banking being an eligible activity u/s. 80P(2)(a)(i), the assessee being in the said business would again matter little; rather, entitle it for the deduction on the entirety of it s profit, i.e., including that referable to business with non-members. Further still, the assessee/s, satisfying the primary condition of s. 2(19) of the Act defining a soci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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