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TMI Blog2015 (4) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... ME Court). Furthermore, as can be seen from provisions of Section 67(2) of the Cooperative Societies Act the question of control of the State Government by specifying the mode of investment or the mode of use of the reserve fund can arise only in the eventuality when the society does not use the reserve fund in the business of the society. It is only in the event the society does not choose to use the reserve fund for the business of the society that the question about investing the reserve fund in the specified category of investments and thereafter utilizing the same for the objects specified by the State Government can arise. Hence, not only is there no diversion of income by overriding title but in fact there is no outgoing of funds fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount as per the provisions of Sec.67 of Gujarat State Co operative Societies Act was not a diversion of income at source by overriding title ? 2. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the transfer to reserve fund cannot be treated as a business expenditure and allowed deduction u/s 28/37 of the IT Act, 1961 ? 3. The facts of these two appeals are identical, therefore, the facts are taken from Tax Appeal No.72 of 2004 for convenience. 4. The facts in brief are that the Assessing Officer assessed the total income of the appellantassessee at Rs.3,87,33,858/ as against the returned income of ₹ 2,74,43,450/ . The assessee challenged the said order of the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and perused the material on record. We have also perused the decision of this Court passed in ITR No.65 of 1997, relied upon by learned advocate for the appellant, and found that the questions of law involved in these appeals are already concluded by the above decision. Paragraph Nos. 8 and 9 of the above decision reads as under: 8. Having heard the learned advocates it is apparent that the issue raised by the two questions, at the instance of the assessee, stands concluded by the aforesaid decision of the Apex Court in the case of Associated Power Co. Ltd. Vs. Commissioner of Income tax (supra). Furthermore, as can be seen from provisions of Section 67(2) of the CoPage operative Societies Act the question of control of the State Go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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