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TMI Blog2018 (9) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... ich laid down specifically that the provisions of section 80P of the Act will not apply to any co-operative bank and accordingly deduction under section 80P was no more available to any Regional Rural Bank (RRB) from A.Y. 2007-08. 2. Ld. CIT (A) has erred in law as well as on facts in deleting the addition of Rs. 1.82.02.860/- in view of the OM dated 25.08.2006 addressed to RBI clarifying that Regional Rural Banks would not be eligible for deduction u/s 80P of the Act from A.Y. 2007-08. 3. Ld. CIT (A) has erred in law as well as on facts in deleting the addition of Rs. 1.82.02.860/- in view of the circular No.6/2010dat:ec1 20.09.2010 which clarified that circular No. 319 dated 11.01.1982 deeming any Regional Rural Bank to be co-operat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Since, no tax on the dividend received by the assessee has been paid by the dividend paying society, being cooperative society, therefore, the dividend income cannot be exempted in the hands of the assessee. Therefore, the Assessing Officer rightly added Rs. 1,82,02,860/- to the income of the assessee. The Ld. DR submitted that the CIT(A) in deleting this addition. 6. The Ld. AR relied upon the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. In the present case, dividend received from IFFCO and UP Cooperative Bank Ltd. are exempt u/s 80P(2)(1) of the Income Tax Act, 1961 as IFFCO and U.P. Cooperative Bank Ltd. are cooperative society. The CIT(A) held as under:- "4. Havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the appellant have been carefully considered. It is observed that the Assessing Officer had made addition of Rs. 1,82,02,860/- holding that dividend income received from IFFCO is not exempt. The aforesaid cooperative society had not paid tax on dividend paid to the appellant as per provisions of section 10 (34) r.w. Section 1150 of the Act. On the other hand the appellant has vehemently argued that dividend income received from the aforesaid cooperative society was exempt u/s 80P (2)(d) of the Act. It is also contended that the A.O. has ignored the fact that part dividend has come from U.P. Cooperative Bank. The appellant has also furnished copies of the order of CIT (A) wherein in similar facts and circumstances, the CIT (A) in thei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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