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TMI Blog2013 (6) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of assessee. - ITA Nos. 1899/Ahd/2012 - - - Dated:- 31-1-2013 - Shri D. K. Tyagi And Shri A.K. Garodia,JJ. For the Petitioner : Sri Rahul Kumar, Sr. D. R. For the Respondent : Sri S. N. Soparkar, A. R. ORDER Per : D. K. Tyagi, Judicial Member:- This is the Revenue s appeal arising out from the order of Ld. CIT(A)-6 Ahmedabad dated 04/07/2012. 2. The Revenue has taken following effective grounds of appeal:- 1. That ld. CIT(A) has erred in law and on facts in allowing the deduction of expenditure of Rs. 15,83,750/- owing to distribution of gifts to members/staff which cannot be considered as incurred for the purpose of business. 2. That the ld. CIT(A) has erred in law and on facts in replying on the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Gujrat High Court in the case of CIT v/s. Dascroi taluka Co-op. Union Ltd.(126 ITR 413) and Karajan Co. Op. Cotton Sales vs. CIT (Gujrat) (199 ITR 17). The copies of the above judgments are already submitted along with our submission dated 21/09/2011. It is further respectfully submitted that above gift articles are purchased from M/s Krishana Metal Corporation vide bill No. 19 dated 07/07/2008 and complete details with copies of bills are already submitted with our submission dtd. 12/09/2011. The amounts are also paid by Account Payee cheque on dated. 13/05/2008 of Rs. 10,00,000/- and on 09/07/2008 of Rs. 5,83,750/-. The contention of the assessee is not acceptable, because the assessee is a bank and the nature of business of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure as per section 37. The view taken by the Division Bench of this Court in Dascroi Taluka Co-operative Purchase Sales Union Ltd. s case (supra) runs parallel to the aforesaid legal positron and does not appear to be erroneous from any angle. Consequently, there remains no occasion to reconsider the said decision. In the instant case, it was the contention of the assessee-society that those presents were given to the members to keep them in good humour as it was an occasion of celebration of its silver jubilee and in order to see that the members continue to supply their cotton for the purpose of ginning and pressing to the assessee-society and for getting if marketed through it, such presents were found necessary for augmenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sents to as own members would amount to expenditure on itself or application of its income to its members also could not be countenanced as the society was entirely a separate entity functioning under the provisions of the Gujarat Co-operative Societies Act, 1961 and was distinct from its members. As per section 96 of the said Act, disputes can be contemplated even between the society, on the one hand, and its members, on the other. Thus, a society is a separate legal entity having its own business and business income. In the course of augmenting its business and maintaining it, if the society as a corporate body decided to give presents to its members and to commemorate Silver Jubilee Celebrations, it could not be said that the society was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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