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TMI Blog2021 (7) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the revenue is not that the contribution made by the assessee to the fund is capital expenditure or is in the nature of personal expenses or expenditure described in any other Sections of Chapter IV of the Act. It has further been held that assessee has incurred the expenditure for the purposes of business and therefore, the same is an admissible expenditure under Section 37 of the Act. This court in case of assessee in respect of Assessment Year 2009-10 [ 2021 (3) TMI 528 - KARNATAKA HIGH COURT] has allowed the payments made to Primary Agricultural Cooperative Societies and District Central Co-operative Banks as an admissible expenditure under Section 37 - Decided in favour of assessee. - I.T.A. NO.516 OF 2016 - - - Dated:- 5-7- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Assessment Year 2007-08 on 31.10.2007 and declared the income of ₹ 40,77,27,150/-. The return of income was processed under Section 43(1) of the Act. There was a scrutiny assessment against the original return of income. The proceeding under Section 147 of the Act were initiated and necessary notice was issued to the assessee. The assessee filed return of income in response to the notice under Section 148 of the Act and declared the income of ₹ 36,19,77,100/-. The Assessing Officer, by an order dated 30.03.2013, assessed the total income of the assessee at ₹ 51,71,70,670/- and held that the following funds are not allowable as deduction: a) Common Good Fund ₹ 25,00,000/- b) Special Assistance Fund & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laced on decisions in 'ASSOCIATED POWER CO. LTD. VS. COMMISSIONER OF INCOME-TAX', (1996) 84 TAXMAN 355 (SC), 'COMMISSIONER OF INCOME-TAX VS. JODHPUR CO-OPERATIVE MARKETING SOCIETY', (2004) 140 TAXMAN 541 (RAJASTHAN), 'C.E.S.C. LTD. VS. DEPUTY COMMISSIONERO F INCOME-TAX', (2004) 27- ITR 383 (CAL.). 5. On the other hand, learned Senior counsel for the assessee submitted that contributions made by the assessee towards various funds in accordance with the bye-laws of the assessee which is a co-operative bank cannot be held as distribution of profits as appropriation of net profit can only be done in an Annual General Meeting of the co-operative society as required under Section 27 of the Act. It is also submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e similar in nature and on same reasoning. For the facility of reference para 4.6 of the order passed by Commissioner of Income Tax (Appeals) is reproduced below, which reads as under: The three claims for the appellant mentioned above are similar in nature. For the same reasons mutatis mutandis given in my appellate order (supra) for the Assessment Year 2008-09, I uphold the disallowances of the three amounts mentioned above aggregating ₹ 10,61,43,782/-. 7. The tribunal while dealing with the claims of the assessee for allowance as an expenditure under Section 37 of the Act, has held that the funds contributed by the assessee neither remains with the Apex co-operative bank nor comes back to the assessee bank in any other fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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