2014 (12) TMI 1262

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....JCIT Respondent by : Shri T. Banusekar, CA O R D E R PER S.S.GODARA, JUDICIAL MEMBER This Revenue's appeal for assessment year 2009-10, is directed against order of the Commissioner of Income-tax (Appeals)-I Coimbatore, dated 18.1.2013, passed in Appeal No. 372/11-12, allowing the assessee's section 80P(2)(a)(i) deduction of `54,21,836/- in proceedings under section 143(3) of the Incom....

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....to be that providing credit facility to members and also the credit facilities took its colour from banking activity. He held that these jewel loans had been made available even to its associate members not having voting rights and share in distributed profits. This resulted in disallowance of the impugned deduction amounting to ` 54,21,836/-. 4. The assessee preferred an appeal. The CIT(A) has....

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....ed in banking and hence is not eligible to providing credit facilities to its members. The Co-operative Society is run by the Special Officer and he is empowered to enroll associate members in Cooperative Society. Associate member is also a member of the Society and he is eligible for all the benefits of a member of the Co-operative society except for voting rights. The appellant society was deriv....

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....994. Therefore, we observe that this activity is as per its byelaws. The Revenue's next argument that it ought not to have allowed this facilities to the associate members not having voting and other rights for section 80P deduction stands rejected by a co-ordinate bench of the 'tribunal' in case of M/s SL(SPL) 151, Karkudalpatty Primary Agricultural Co-operative Credit Society Ltd in I....