K26 VADAKKUPUDUPPALAYAM PACCS,ERODE vs. ITO, WARD-2(4), ERODE

ITA 594/CHNY/2025Status: DisposedITAT Chennai24 June 2025AY 2012-13Bench: SHRI GEORGE GEORGE K (Vice President), SHRI S.R. RAGHUNATHA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the Tamil Nadu Co-operative Societies Act, 1983, includes 'associate/nominal members' and that these members are also 'members' as per Section 2(16) of the Act. Therefore, the assessee is entitled to the deduction u/s.80P(2)(a)(i).

What were the facts?

The assessee, a primary agricultural co-operative society, filed its return of income admitting 'Nil' income after claiming deduction u/s.80P for assessment years 2012-13 and 2013-14. The AO disallowed the deduction, stating that the 'B' class (nominal) members were not real members and violated the principle of mutuality.

What were the issues?

Whether 'B' class (nominal/associate) members of a co-operative society are considered 'members' under the relevant Act for allowing deduction under Section 80P.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 147,Section 80P(2)(a)(i),Section 2(16)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA

Hearing: 23.06.2025Pronounced: 24.06.2025

PER BENCH:

These two appeals at the instance of the assessee are directed against different orders of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, both dated 08.01.2025 passed under section 250 of the Income Tax Act, 1961 ITA Nos.594 & 595/CHNY/2025 (hereinafter called ‘the Act’). The relevant Assessment Years are 2012-13 & 2013-14. 2. The issue involved

The order continues below.

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