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2022 (11) TMI 826
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....DR ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order passed by the CIT(A), Belgaum on 22-03-2018 in relation to the assessment year 2015-16. 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 also called 'the Act') in respect of interest earned from credit facilities provi....
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....(i) provides that in the case of co-operative society engaged in carrying on the business of banking or providing credit facilities to its members, the whole of the amount of profits and gains of business attributable to such activities shall be deductible in the computation of total income. The claim of assessee for deduction has been negated by the authorities below, inter alia, on the ground th....
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....al member who is an individual shall not also be entitled to become an office bearer of the society. * An Associate member may hold shares but shall not be entitled to become an office bearer of the society." 5. On going through the above definition of 'Member', it becomes overt that the term 'Member' also includes a Nominal Member. Once it is accepted that the assessee, governed by th....
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....rative 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 the Kerala Act was eligible u/s 80P(2)(a)(i) of the Act as the term 'Member' under the Kerala Act included 'Nominal Members'. In view of the foregoin....