TaxTMI 
TaxTMI 
2021 (6) TMI 758
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....his 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 case are that the assessee is a Co-operative socie....
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....IT (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 order on this point, against which the assessee....
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.... 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 sympathizer member". On going through the above defi....
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....s 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 interest on loans given to Nominal Members under th....