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TMI Blog2018 (6) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee for statistical purposes. - ITA Nos. 2676 & 2677/Ahd/2014 - - - Dated:- 1-2-2018 - Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member Assessee by : Shri S.N. Divatia, AR Revenue by : Shri Rajdeep Singh, Sr DR O R D E R Per Rajpal Yadav, Judicial Member: The present two appeals are directed at the instance of the assessee against two separate orders of the CIT(A)-XX, Ahmedabad, both dated 28.04.2014, passed for Assessment Years 2008-09 2011-12. 2. The Registry has pointed out that both the appeals of the assessee are time barred by 94 days. In order to explain the delay, the assessee has filed an application for condonation of delay along with affidavit of Shri Jagdis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed three grounds of appeal, but in brief, its grievance is that the CIT(A) has erred in not granting benefit of Section 80P(2)(d) of the Income-tax Act on the dividend income of ₹ 3,04,050/- and ₹ 2,02,700/- in Assessment Years 2008-09 and 2011-12 respectively. 5. The facts on vital points are common in both the appeals; therefore, for the facility of reference, we are taking up the facts from Assessment Year 2008-09. The assessee is a Co-operative Society, giving credit facility to its members. It has filed its return of income on 30.09.2008 declaring Nil income. Similarly, in Assessment Year 2011-12, it has declared Nil income, after claiming deduction under Section 80(P)(2) of the Income-tax Act. The assessee has made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the nature of interest/dividend was derived from co-operative bank i.e. Banas bank etc. which was not admissible for the deduction u/s.80P(2)(d) of the Act as the Banas bank was not a co-operative society. It is worth here to mention that as per the aforesaid provisions the income is exempt only when the same has been derived from its investments with any other co-operative societies. Now in the instant case Banas bank cannot be said to be a co-operative society as after the insertion of Section 80P(4) cooperative banks have been separately defined from co-operative societies. The co-operative societies had their activities only with their members while the bank has its operations with public at large. Further, the banks are governed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility to its members, is entitled for deduction under Section 80P(2)(d) in respect of any income by way of interest or dividends derived by it from its investments with any other co-operative society. In case of the assessee, this deduction was disallowed by the Assessing Officer on the ground that, as per sub-clause (4) of Section 80P of the Act, the institutions where the assessee made investments were not co-operative societies, rather they were co-operative banks. The contention of the learned counsel for the assessee was that inherently all these banks were co-operatives societies and they were engaged in the banking business; therefore, in their cases they might not be entitled for deduction under Section 80P(2), but dividend income f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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