2021 (3) TMI 43

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....of claim for deduction u/s. 80P of the Act in respect of interest income. (c) Applicability of TDS provisions on interest on deposits given to non-regular members. 2. We heard the parties and perused the record. The assessee is a credit co-operative society providing credit facilities to its members. The assessee claimed deduction u/s. 80P(2)(a)(i) of the Act. The AO held that the assessee is carrying on banking business and accordingly, applying the provisions of sec. 80P(4), the AO rejected the claim and accordingly computed total income. 3. In the appellate proceedings, the Ld. CIT(A) noticed that the assessee has got 495 regular members, who have voting rights and 5,844 associate members, who do not have voting rights. By placing re....

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....construe the expression "Members" in section 80P(2)(a)(i) of the Act in the light of definition of that expression as contained in the concerned co-operative societies Act. We notice that the Hon Tale Supreme Court has considered the decision rendered 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. 8. Since the Hon Tale Supreme Court has settled many issues in the decision rendered by it in the case of Mavilayi Service Cooperative Bank Ltd. (supra) and since the facts prevailing in the instant case needs to be examined afresh in the light of the principles enunciated by Hon Tale Supreme Court in the above said case, we are of ....