TMI Blog2012 (7) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... rification - in favour of assessee for statistical purposes. - ITA No.1319/Mds./2006 - - - Dated:- 25-5-2012 - SHRI N.S.SAINI, SHRI CHALLA NAGENDRA PRASAD, JJ. Appellant by : Shri V.Kannan, IRS Retired Respondent by : Shri Anirudh Rai C.I.T.DR, Shri K.E.B.Rengarajan Jr.Standing Counsel O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER: This is an appeal filed by the assessee against the order of Commissioner of Income Tax(Appeals),Salem dated 27.03.2006. 2. The only issue involved in this appeal is that Commissioner of Income Tax(A) erred in disallowing the claim for deduction under Section 80 P (2)(a)(i) of the Income Tax Act, 1961 of Rs.63,56,983/- on interest income from providing of credit facilities to its m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter restored the matter back to the file of the Assessing Officer for fresh adjudication of the issue. He submitted that following the said decision the issue should be remanded back to the file of the Assessing Officer for fresh adjudication. 6. The Departmental Representative did not have any objection to the above submission of the assessee. 7. After considering the rival submissions and perusing the orders of the lower authorities and materials available on record, we find that the assessee has earned interest income of Rs.63,56,983/- by providing of credit facilities to its members. The assessee had claimed deduction of the said amount under Section 80 P(2)(a)(i) of the Act, which was disallowed by the Assessing Officer on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st received from the members of the society, we find that none of the authorities below, including the High Court have examined the memorandum of association filed by Sale m Cooperative Sugar Mills Ltd., Madurantakam Co-operative Sugar Mills Ltd., Ambur Co-operative Sugar Mills Ltd., Dharmapuri District Co-operative Sugar Mills Ltd., Vellore Co- operative Sugar Mills Ltd., Attur Agricultural Producers Co-operative Society Ltd. and Modem Engineers Construction Cooperative Society Ltd. Under section 80P(1), deduction in respect of income of co-operative societies is provided for. Under section 80P(1) where the gross total income of a co-operative society includes any income referred to in sub-section (2) then the sums specified in sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the issue should be restored to the file of the Assessing Officer for proper verification to which the ld. A.R of the assessee submitted his no objection. In the above facts and circumstances, in our considered opinion, it shall be fair and in the interest of justice to restore the issue back to the file of the Assessing Officer for adjudication afresh after examining the Memorandum of Association, Articles of Association and other relevant documents in the light of the observation of the Hon'ble Supreme Court in the case of Ponni Sugars and Chemicals Ltd (supra) and after taking into consideration the decision of the Tribunal in the case of M/s Modern Engineers Construction Co-op. Society (supra). Needless to mention that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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