https://www.taxtmi.com/caselaws?id=341211 A co-operative society's entitlement to deduction on interest from loans to Class B or associate members turned on whether those persons were "members" for section 80P(2)(a)(i). The Court noted that the bye-laws and the State Co-operative Societies Act treated associate members as members within the statutory scheme, and that lack of voting rights, administrative participation, or dividend entitlement did not by itself exclude them. It also observed that higher interest rates or non-farm lending did not defeat the claim where credit was confined to members and the society was not shown to be a co-operative bank caught by section 80P(4). On the facts, however, the assessee failed and the Revenue's challenge succeeded. en-us Wed, 10 Aug 2016 00:00:00 +0530 Sat, 01 Apr 2017 15:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341211 A co-operative society's entitlement to deduction on interest from loans to Class B or associate members turned on whether those persons were "members" for section 80P(2)(a)(i). The Court noted that the bye-laws and the State Co-operative Societies Act treated associate members as members within the statutory scheme, and that lack of voting rights, administrative participation, or dividend entitlement did not by itself exclude them. It also observed that higher interest rates or non-farm lending did not defeat the claim where credit was confined to members and the society was not shown to be a co-operative bank caught by section 80P(4). On the facts, however, the assessee failed and the Revenue's challenge succeeded. Case-Laws Income Tax Wed, 10 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341211