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TMI Blog2021 (9) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... iolated the principle of mutuality - If the assessee receives interest / dividend income out of investments earned with co-operative society, the same is entitled to deduction u/s 80P(2)(d) of the I.T.Act. With these observations, we direct the A.O. to examine the claim of deduction u/s 80P(2)(d) of the I.T.Act, afresh. X X X X Extracts X X X X X X X X Extracts X X X X ..... unds is without prejudice to one another, the appellant seeks the leave of the Hon'ble Income Tax Appellate Tribunal, Bangalore to add, delete, amend or otherwise modify each or any of the grounds of appeal either before or at the time of hearing the appeal." 3. Apart from the above grounds / additional grounds, the assessee has raised another additional ground, vide its application dated 31.12.2020. The additional ground raised in its application dated 31.12.2020, reads as follow:- "Without prejudice to the claim that the appellant is entitled to deduction u/s 80P(2)(a) of the Income Tax Act, 1916 (Act) the learned lower authorities ought to have allowed the deduction u/s 80P(2)(a) of the Act to the extent that such income is attributab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon'ble Apex Court in the case of The Citizen Co-operative Society Ltd. v. ACIT (supra), is clearly applicable. The CIT(A) concluded by stating that as per the judgment of the Hon'ble Apex Court in the case of The Citizen Co-operative Society Ltd. v. ACIT (supra), once the principle of mutuality is violated, deduction u/s 80P(2)(d) of the I.T.Act is not to be allowed, which includes deduction u/s 80P(2)(d) of the I.T.Act. 6. Aggrieved, the assessee has filed this appeal before the Tribunal. The learned AR has filed a brief synopsis, which reads as follow:- "2. On identical facts, another appeal is disposed of by the Hon'ble Bangalore Tribunal in M/s.Ravindra Multipurpose Cooperative Society Ltd. v. ITO (ITA No.1262/Bang/2019). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A) in both the orders are identical. 7. The learned Standing Counsel relied on the order of the ITAT in the case of M/s.Athmashakthi Multipurpose Cooperative Society v. ITO (ITA No.1220 & 1221/Bang/2019 (order dated 18.10.2019). 8. I have heard rival submissions and perused the material on record. The Division Bench of the Tribunal in the case of M/s.Ravindra Multipurpose Co-operative Society Limited v. ITO (supra) had remanded the identical issue to the files of the A.O. for de novo consideration. The Tribunal directed the A.O. to follow the dictum laid down by the Hon'ble Apex Court. The relevant finding of the ITAT in the case of M/s.Ravindra Multipurpose Co-operative Society Ltd. v. ITO (supra) reads as follow:- "6. Grounds 2- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to examine the claim of deduction u/s 80P(2)(d) of the I.T.Act, afresh. 8.3 Insofar as the issues raised in additional grounds are concerned, I noticed that they are purely legal in nature, which can be decided on the basis of facts on record. Therefore, by placing reliance on the judgment of the Hon'ble Apex Court in the case of National Thermal Power Corporation Limited reported in 229 ITR 383, I admit the additional grounds. The issues raised in the additional grounds are also restored to the files of the A.O. since the main issue of claim of deduction u/s 80P of the I.T.Act is restored to the A.O. for fresh consideration. it is ordered accordingly. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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