TaxTMI 
TaxTMI 
TaxTMI 
2025 (5) TMI 2184
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....There is a delay of 32 days in filing this appeal. The assessee has filed a petition for condonation of delay. On perusal of the reasons stated in the condonation application, we are satisfied that there is sufficient cause for delay in filing this appeal and no latches can be attributed to the assessee. Hence, we condone the delay of 32 days in filing the appeal and proceed to dispose off the appeal on merits. 3. The grounds raised reads as follows:- Ground No. 1 The Assessing officer and CIT(A) is contrary to law, facts and circumstances of the case to the extent prejudicial to the interest of the appellant and at any rate is opposed to the principles of equity, natural justice and fair play. Ground No. 2 The Assessing officer and C....
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....nd/or withdraw any or all the above grounds of appeal at any time before or at the time of hearing. 4. Brief facts of the case are as follows:- The assessee is a primary agricultural society registered under TamilNadu Co-operative Societies Act, 1983 (hereinafter 'TNCS Act'). For the assessment year 2016-17, the return of income was filed on 25.03.2018 declaring 'nil' income after claiming deduction u/s. 80P(2)(a)(i), 80P(2)(d) and 80P(2)(c) of the Act. The assessment was selected for scrutiny under CASS and notice u/s. 143(2) of the Act was issued on 10.08.2018. The assessment was completed u/s. 143(3) of the Act vide order dated 22.12.2018. In the said assessment order, the claim of deduction u/s. 80P(2)(d) and 80P(2)(c) of the Act was ....
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....n the case of M/s. Citizen Co-operative Society Ltd vs. ACIT, that assessee was a multi-state operator having its operations spread over many states and registered by the Central Registrar of Cooperative Societies, New Delhi. It is also submitted by the AR that in the above case the assessee had been taking deposits from nominal members, while such classification was not available under the Parent Act. In the present case, the assessee's operations are limited to a small geographical area. The assessee's contentions are considered. It has to be noted that the decision of the Honorable Supreme Court does not differentiate co-operative societies between those dealing with two categories of people with the approval of Registrar of co-o....
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....dmitted to membership after registration in accordance with the provisions of this Act, the rules and the by-laws and includes an associate member;" 8. The Hon'ble Supreme Court order in the case of The Mavilayi Service Cooperative Bank Ltd. & Ors. Vs. CIT, Calicut reported in 431 ITR 1, has held as under:- "46. It must also be mentioned here that unlike the Andhra Act that Citizen Cooperative Society Ltd. (supra) considered, 'nominal members' are 'members' as defined under the Kerala Act. This Court in U.P. Cooperative Cane Unions' Federation Ltd., Lucknow v. Commissioner of Income Tax, Lucknow-l (1997) 11 SCC 287 referred to section 80P of the IT Act and then held: "8. The expression "members" is not defined....
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....ssee, since TNCS Act allows admission of B Class (Associate) Member. The ITAT Chennai in the Case of AA531 Kesarimangalam Primary Agrl. Co-op. Credit Society Ltd in ITA No. 2611/CHNY/2024, allowed the deduction under sec. 80P by accepting submission made by the assessee on the issue of admission of two classes of member. The relevant finding of ITAT reads as follows:- "13. Therefore, according to Ld.AR, as decided by Apex Court at para 47 in the case of Mavilayi Service Co-operative Bank (supra), the assessee's claim would be allowable since similar provisions are governing the present case of assessee i.e. TamilNadu Co-operative Societies Act and hence, giving loans by the assessee/primary agricultural credit society to its 'B' class mem....