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TMI Blog2024 (8) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the assessee has not filed the return of income. The notices issued alongwith questionnaire categorically mentioned information called upon the assessee relating to dividend from Co-op Society and interest from Co-op Society for which the assessee has given the detailed reply alongwith its submissions. CIT(A) merely by deciding the case on merit cannot ignore legal aspect and state that it is infructuous. The reopening is on very same issue and, therefore, it is second opinion. Thus, application under Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963 is allowed. Since the assessment itself becomes bad in law, the issues contested by the Revenue in the present appeal does not require any comment. Appeal of revenue dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k and The Gujarat State Cooperative Bank Limited when interest earned from investment made in any bank, not being co-operative society is not deductible under Section 80P(2)(d). 2. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary. 3. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that of the Assessing Officer be restored. ITA No.666/Ahd/2023 for A.Y. 2014-15 1. CIT(A) has erred in allowing the disallowance under Section 80P(2)(d) of the IT Act of Rs. 1,42,75,240/- being interest and dividend received from Ahmedabad District Co-op. Bank and The Gujarat State Cooperative Bank Limited when interest earned from investment made in any bank, not being co-operative socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that those Banks are working under Banking Regulation and, therefore, the exemption claimed by the assessee Co-op. Bank/Society cannot be held as deduction under Section 80P of the Act as those Banks are not Co-op. Societies and not the Member of the assessee society. The Ld. DR relied upon the decision of Hon ble Apex Court in the case of Totgar s Co-operative Sale Society vs. ITO (2010) 322 ITR 283 (SC). 6. The Ld. AR, at the time of hearing, submitted that as per Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963, the Tribunal should first decide that notice under Section 148 of the Act is bad in law because reopening is based on change of opinion. The Ld. AR also filed the application under Rule 27 of the Income Tax (Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The reopening is on very same issue and, therefore, it is second opinion. Thus, application under Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963 is allowed. Since the assessment itself becomes bad in law, the issues contested by the Revenue in the present appeal does not require any comment. Hence, ITA No.666/Ahd/2023 for A.Y. 2014-15 filed by the Revenue is dismissed. 9. Now coming to the ITA No.533/hd/2023 for A.Y. 2017-18, the assessee filed return of income on 31.10.2017 declaring total income at Rs. 1,99,76,710/- after claiming deduction of Rs. 7,03,37,668/- under Chapter VI-A. The assessment was completed under Section 143(3) of the Act vide order dated 30.12.2019 after denial of deduction under Section 80P(2)(d) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Ahmedabad District Co-op. Bank Limited and the Gujarat State Co-operative Bank Limited are Co-operative Societies registered under Gujarat Co-operative Societies Act, 1961 and, therefore, the word Co-operative Society mentioned in Section 80P(20(d) of the Act includes these Co-operative Societies also and, therefore, the interest earned and dividend income from these Co-operative Societies/Banks should be taken into account while granting deduction under Section 80P(2)(d) of the Act. There is no need to interfere with the finding of the CIT(A). Tthus, ITA No.533/Ahd/2023 for A.Y. 2017-189 filed by the Revenue is also dismissed. 14. In the result, both the appeals filed by the Revenue are dismissed. Order pronounced in the open Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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