9911796707
TMI Blog2024 (7) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... ort] which in turn arisen out of separate orders of assessment passed u/s 143(3) of the Act by the Ld. Income Tax Officer, Range-1(5), Shahjahanpur ['AO' in short] anent to assessment year ['AY' in short] 2016-17 & 2017-18. 2. Since the facts and solitary issue involved in this twin appeals are similar & identical, on the request of rival parties, for the sake of brevity these appeals are heard together for a common and consolidated order. 3. Tersely stated the common facts emanating from the case records are that; 3.1 The respondent assessee is a society registered under the provisions of Society Registration Act, 1860 and engaged in providing fertilizers & pesticides etc., to its members eligible for deduction under s/c (iv) of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the light of settled position of law. 5. The present dispute solitarily revolves around appellant assessee's entitlement for deduction u/s 80P(2)(d) of the Act in relation to interest income earned from investment held by it with banks more precisely scheduled co-operative banks. 6. Without multiplying the authority on the subject matter, as rightly pointed out the Ld. DR Mr Sharma that, the identical issue came for consideration before the co-ordinate bench of this Tribunal in different assessee which was first adjudicated in favour of assessee. The adjudication however in appeal was reversed by the Hon'ble Jurisdictional Allahabad High Court. When the matter further taken up by assessee, the Hon'ble Supreme Court remanded the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory rules, which may have bearing on the nature of income, and entitlement to exemption under Section 80P. We permit the appellants to file the said documents, including the statutory rules, within a period of four weeks from today. The respondent i.e. Revenue would be entitled to file additional documents and also place written reply on record within a period of eight weeks from the date a copy of the documents is furnished. Accordingly, we would set aside the impugned order passed by the High Court and the Tribunal with the request that the Tribunal would decide the issue of exemption under Section 80P on merits and in accordance with law without being influenced and being bound by the earlier orders passed by them and the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cur loss in the year, [Provided that the provisions of this clause shall not apply to a Primary Agriculture Credit Co-operative Society, a Central Co-operative Bank or the Apex Bank.',] (c) An amount that may be prescribed shall be credited to the research and development fund created in the Apex Society of the concerned class of Co-operative societies and which shall be maintained for the purpose of Research and development in the prescribed manner. (d) an amount not exceeding twenty percent as may be prescribed shall be transferred to a fund called the Equity Redemption Fund to be established and utilized in the manner prescribed by such co-operative society which has the subscription of the State Government in its share capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he profits or gains from such investments were connected with or incidental to the carrying on of the actual business. They were, in our opinion, rightly held by the Tribunal to be attributable to the activity carried on by the assessee within the "meaning of clause (c) aforesaid. We therefore, answer the question referred to us in the affirmative in favour of the assessee and against the Department. 8. Following the aforementioned ratio laid down by the Division Bench which we consider binding on us, we too answer the question referred to us in the affirmative in favour of the assessee cooperative society and against the Revenue." 7.3 Further we find that the assessee has relied on a judgment of Raipur Tribunal in the case of Gramin Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atch of appeals the facts are indifferent from the aforestated cases decided by the co-ordinate bench. In view thereof, respectfully following the decision of co-ordinate bench (supra) and maintaining the parity in the decision on the sole & substantive issue of deduction, we set-aside the impugned orders of first appellate authority and remand the matter back to the file of Ld. AO with a direction to deal with these two bullet issues (1) proportionate deduction of management expense & interest paid against the gross interest earned and (2) deduction of interest u/s 80P(2)(d) of the Act and decide the same in accordance with law in the light of judicial precedents (supra) referred herein above. Needless to state that the appellant shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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