2020 (9) TMI 567

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....taka co-operative societies act 1959 and is engaged in the business of providing credit facilities to its members and distribution of ration card. Only issue alledged by assessee in present appeal is regarding denial of deduction under section 80P of the Act. 3. Assessee during year under consideration filed 'nil' return of income after claiming deduction of Rs. 84 67,703 /- under section 80P of the Act. The return was selected for scrutiny and during assessment proceedings, Ld.AO noticed that principles of mutuality were violated by assessee. Ld.AO thus denied deduction claimed under section 80P of the Act, by following decision of Hon'ble Supreme Court in case of Citizen co-operative society Ltd., reported in (2017)84 taxman.com114. Ld....

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....mitted that it has not violated any of the provisions of Karnataka co-operative societies act and that members include nominal and associate members. It has been submitted that only jewel loans are given to nominal members which is about 10% of total advances, and that, such jewel loans are only given to farmers who hold agricultural land. 6.3. He submitted that, ratio of Hon'ble Supreme Court in case of Citizen Co-operative Society Ltd., (supra), will not be applicable to facts of present case. Ld.AR submitted that, assessee's facts are more similar with facts in case of Tumkur Merchans Souharda Credit Co-operative Ltd. vs.ITO, reported in 230 Taxman 309. He also submitted that, there has been various decisions of this Tribunal, wherein....