TaxTMI 
TaxTMI 
2020 (7) TMI 664
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....s 'C' Bench for the assessment year 2011-12. The appeal is entertained on the following substantial question of law: ''Whether under the facts and circumstances of the case the Tribunal was right in holding that the appellant is not entitled for deduction under Section 80P?'' 2. Heard N.V.Balaji, learned counsel appearing for the appellant / assessee and Mr.M.Swaminathan, learned senior standing counsel appearing for the Revenue assisted by Mr.V.Pushpa, learned Junior standing counsel appearing for the Revenue. 3. Identical issue was decided by the Division Bench of this Court in the case of the Principal Commissioner of Income Tax, Salem Vs., S1308 Ammapet Primary Agricultural Cooperative Bank Ltd., Ammapet, in....
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....fter registration in accordance with the provisions of the Act, the Rules framed thereunder and the By-laws and includes an associate member. The expression 'associate member' is defined under Section 2(6) of the TNCS Act to mean a member, who possesses only such privileges and rights of a member and who is subject only to such liabilities of a member as may be specified in this Act, the Rules and the By-law. 13.Thus, the definition of the word 'members' includes an associate member and therefore, the Assessing Officer fell into an error in drawing a distinction between A Class members and B Class members. For the purpose of being entitled to a relief under Section 80P of the Act, all that is required is that the cooperati....
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....d Cooperative Societies Act, 1995 and that they accepted deposits from third parties, who were not members in the real sense and were using those deposits to advance gold loans. Therefore, the Hon'ble Supreme Court pointed out that such an activity of the said society was that of a finance business and could not be termed as a cooperative society and that the loans, which were disbursed, were without the approval from the Registrar of Mutually Aided Cooperative Societies, Ranga Reddy District. The Hon'ble Supreme Court found that the said society was not entitled to deduction under Section 80P of the Act. 16. It is noteworthy to point out that the Hon'ble Supreme Court in the decision in the case of Citizen Cooperative Socie....