2024 (3) TMI 1328

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.... was dislodged in Appellant society even when the appellant society had 1,738 Regular Members, 143 Associate Members and 655 Nominal Members (as noted in para 4.6 -page 13-14 of appellate order) and appellant had not violated the cap of 15% meant for Associate members stipulated under the Proviso to Sec. 18 of KCS Act, 1959 and No restriction was placed in the Statute as to the maximum number of Nominal Members. 2. Does the appellate order sustainable when it came to the conclusion that the 'concept of mutuality' was missing in appellant society ignoring the submissions noted in Para 6.1 of the appellate order (Page 19 to 20) and wrongly relying on the distinguishable citations, viz: Hon. Apex Court in Bangalore Club vs. CI....

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....nvestments was taxable in view of the law laid down by - (a) Hon. High Court of Karnataka in ITA 307/2014 - Tumkur Grain Merchants Souharda Co-operative Ltd. vs. I.T.O. and ITA 29/2015 - Guttigedarara Credit Co-op. Society Ltd. Mysore Vs. ITO. and (b) Hon. High Court of Judicature at Hyderabad in W.P. No. 12727 and 12767/2016 The Vavveru Co-op. Rural Bank Ltd. and Anr. Vs. The Chief C.I.T. & anr. vis-a-vis the judgement in Totgars Co-operative Sale Society Ltd.; 6. The appellant craves leave to add, to amend, modify and / or to alter any of the foregoing grounds and also urge such other grounds at the time of hearing." 2. Brief facts of the case are as under: 2.1. The assessee is a Primary Agricultural Credi....

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....of the Act. 2.2 Aggrieved by the assessment order, the assessee preferred appeal before the Ld.CIT(A). 2.3 Before the Ld.CIT(A), the assessee relied on various decisions including the decision of Hon'ble Supreme Court in case of Mavilayi Service Co- operative Bank Ltd. v. CIT reported in 431 ITR 1, however the Ld. CIT(A)/NFAC disallowed the claim of assessee by upholding the observations of the Ld.AO. 2.4 Aggrieved by the order of the Ld.CIT(A) / NFAC, the assessee is in appeal before this Tribunal. 3. The Ld.AR submitted that the NFAC did not consider the decisions of Hon'ble Supreme Court in case of Mavilayi Service Cooperative Bank Ltd. v. CIT reported in 431 ITR 1 and various other decisions which has been passed subsequent ....