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TMI Blog2012 (7) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the Assessing Officer's finding that the net interest effect was excess payment over receipt of interest. Deduction under Section 80P(2)(d) is admissible only to a Co-operative Society engaged in the business of banking or of providing credit facility to its members and further that the assessee has claimed deduction in respect of the gross interest receipts, where as the deduction even if admissible, would be available only in respect of the net interest receipts. 3. The Commissioner of Income Tax(Appeals) erred in directing the Assessing Officer to allow deduction under Section 80 P (2)(a)(i). 4. The brief facts of the case are that the Assessing Officer observed that assessee is a co-operative Sugar Mill engaged in manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence, deleted the disallowance made by the Assessing Officer. 6. On appeal, the Tribunal dismissed the appeal of Revenue. 7. On further appeal, the Madras High Court observing that the Hon'ble Supreme Court in the case of C.I.T. Vs. Ponni Sugars and Chemicals Ltd. reported in [2008] 306 ITR 392 (SC) had remitted the matter back to the Tribunal for de novo consideration in accordance with law, restored the matter back to the Tribunal for fresh adjudication in the light of the decision of Hon'ble Supreme Court on the issue of deduction under Section 80P(2)(a)(i) of the Act. 8. At the time of hearing, the Authorised Representative of the assessee filed a copy of the order of the Tribunal in the case of ITA Nos.2280 & 2281/Mds/1995 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). We find that on the same issue and facts, the Chennai 'A' Bench of the Tribunal in the case of M/s.Dharmapuri District Co-operative Sugar Mils Ltd.(supra) has restored the matter back to the file of the Assessing Officer by observing as under:- "4. After considering the rival submissions and perusing the materials available on record, we find that the Hon'ble Supreme Court, in the case of CIT vs Ponni Sugars and Chemicals Ltd. reported in [2008] 306 ITR 392, has remitted the matter back to the file of the Tribunal for examining the Memorandum of Association, Articles of Association, return of income and status of business indicated in the return of income of the Co-operative society to prove that the respective societies have engaged th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve society, Parliament has stipulated that the society must be engaged in carrying on the business of banking or providing credit facilities to its members. Therefore, in each case, the Tribunal was required to examine the memorandum of association, the articles of association, the return of income filed with the Department, the status of business indicated in such returns, etc. This exercise had not been undertaken at all. 19. For the aforestated reasons, we set aside the impugned judgments of the High Court and remit the matters to the Tribunal for de novo consideration in accordance with law. All the contentions on both sides are expressly kept open." 5. Before us, the appeals are filed by Revenue. Both the parties before us has not br ..... X X X X Extracts X X X X X X X X Extracts X X X X
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