Nominal Members Do Not Defeat Section 80P Deduction- Bang ITAT Grants Relief to Co-operative Society

Lokapavani Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore) The Bangalore ITAT held that the mere presence of associate or nominal members does not disentitle a co-operative society from claiming deduction u/s 80P(2)(a)(i). In the case of Lokapavani Credit Co-operative Society Ltd., the Assessing Officer had denied section 80P deduction by relying on the Supreme Court ruling in Citizen Co-operative Society Ltd., alleging that the society had nominal members and therefore ceased to qualify for deduction. The Tribunal, however, relied on the later Supreme Court ruling in Mavilayi Service...