2021 (2) TMI 854

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....her and are being disposed of by this common order, for the sake of convenience. 2. The first common issue urged by the assessee in both the years relate to rejection of claim of deduction under 80P(2)(a)(i) of the Income-tax Act,1961 ['the Act' for short]. 3. The facts relating to the above said issues are stated in brief. The assessee is a cooperative society providing credit facilities to its members. The assessee claimed deduction u/s 80P of the Act in both the years under consideration. The A.O. noticed that the assessee has extended credit facilities to nominal members who have no role in the management of the society and also does not have any right to vote. He also observed that many nominal members did not possess ....

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....red by it in the case of Citizen Co-operative Society Ltd. (supra) and observed that the ratio decidendi of Citizen Co-operative Society Ltd. must be given effect to. Accordingly, he submitted that the assessee should be allowed deduction u/s 80P(2)(a)(i) of the Act. 5. The Ld. D.R., on the contrary, submitted that the issue of deduction needs to be examined afresh in the light of decision rendered by Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. (supra). Accordingly, he submitted that this issue may be restored to the file of the A.O. 6. We heard the parties on this issue and perused the record. We find merit in the submission made by Ld. D.R. Since the Hon'ble Supreme Court has settled many issues in t....

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....this submission, the Ld. A.R. placed reliance on the decision rendered by Hon'ble High Court of Karnataka in the case of Totgars Co-operative Sale Society Ltd. Vs. ITO (2015) 58 taxmann.com 35 (Karn). The Ld. A.R. submitted that the assessee in the above said case had put forth identical claim claim before Hon'ble Supreme Court in the case reported as Totgars Co-operative Sale Society Ltd. Vs. ITO (2010) 188 taxmann.com 282 and the Hon'ble Supreme Court, vide 14 of its order, had restored the question raised by the assessee to the file of Hon'ble High Court of Karnataka. Consequent thereto, the Hon'ble High Court of Karnataka has passed the order in the case reported in 58 taxmann.com 35 and held that the Tribunal was not right in coming to....