Deduction 80P admissible as presence of nominal and associate members lawful under KCSA

ITO Vs Sahakara Nagar Credit Cooperative Society Ltd. (ITAT Bangalore)

ITAT Bangalore held that eligibility u/s. 80P should be assessed in the light of the relevant state cooperative law. Under Karnataka Cooperation Societies Act [KCSA], the presence of nominal and associate members is lawful and does not break the mutuality principle. Hence, deduction u/s. 80P available.

Facts- The assessee is a cooperative society carrying out banking business and providing credit facilities to the members. The assessee for the year under consideration declared gross total

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