2021 (6) TMI 758

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Thomas ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(Appeals)-2, Nagpur on 31-01-2020 in relation to the assessment year 2016-17. 2. The only issue raised in this appeal is against the denial of deduction u/s 80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). 3. Briefly stated, the facts of the cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urt in Citizen Co-operative Society Ltd. vs. ACIT (2017) 84 taxmann.com 114 (SC), the AO repelled the assessee's claim and disallowed the deduction by holding that the assessee violated the provisions by accepting deposits from and making advances to such members, who though described as 'Nominal Members', were not entitled to dividend or shareholders' rights. The ld. CIT(A) echoed the assessment ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mbers', who were neither entitled to dividend nor voting rights. It is relevant to note that the term 'Member' has been defined u/s 2(19) in the Maharashtra Act to mean: "a person joining in an application for the registration of a Co-operative society which is subsequently registered, or a person duly admitted to membership of a society after registration and includes a nominal, associate or s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... CIT (2021) 123 taxmann.com 161 (SC) considered its earlier judgment in Citizen Co-operative Society Ltd. vs. ACIT (supra) vide para 46 of its order. Taking note of the fact that the Citizen Co-operative Society Ltd. vs. ACIT (supra) judgment dealt with the Andhra Act wherein the term 'Member' did not include Nominal Member, the Hon'ble Supreme Court in Mavilayi Service (supra) held that the ....