INCOME TAX ACT, 1961

Section 80P

Deduction under section 80P - Allowability - Whether in Tamil Nadu Co-operative societies Act, 1983, a member and an associate member are one and the same -

Issue arose as regards entitlement of petitioner for deduction under section 80P, who claimed to be Primary Agricultural Co-operative Credit Societies. Held: As decided in K. 2058, Saravanampatti Primary Agricultural Co-Operative Credit Society Ltd. v. ITO, assessee was entitled to deduction under section 80P. Reasoning was that under Tamil Nadu Co-operative societies Act, 1983, a member and an associate member are one and the same and an associate member has also been held to be holding the character of a member. An 'associate member' is also a 'member' in terms of section 2(16) of the TNCS Act. Furthermore, AO himself found that associate members are also admitted as members of the society. In such circumstances, AO fell into an error in not granting any relief to the assessee society.

Followed:K. 2058, Saravanampatti Primary Agricultural Co-operative Credit Society Ltd. v. The ITO [W.P. Nos. 17 of 2020, dt. 31-1-2020] : 2020 TaxPub(DT) 0825 (Mad-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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