9911796707
TMI Blog2020 (9) TMI 1013X X X X Extracts X X X X X X X X Extracts X X X X ..... earing both the parties, we find that the reasons stated by the assessee are bonafide which really prevented the assessee to file the present appeal in time. Therefore, the delay of 196 days are condoned. 3. The sole ground raised by the assessee challenging the action of Pr. CIT-2, Aurangabad in treating the original assessment made u/s. 143(3) of the Act is erroneous and prejudicial to the interest of revenue in the facts and circumstances of the case. 4. The contention of Pr. CIT-2 was that the assessee has made certain investment in various banks and earned interest income to an extent of Rs. 3,74,00,231/- on fixed deposit and dividend income at Rs. 4,00,328/-, totaling to Rs. 3,78,00,559/- and claimed the said amount as exempt u/s. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee as such the interest and dividend has not earned from Cooperative Society, further, that there was lack of enquiry by the AO in terms of principle laid down by the Hon'ble Supreme Court in the case of Totgar's Co-operative Sale Society Ltd. (supra). The assessee is not entitled to claim the interest and dividend earned as deduction as the same were earned from Co-operative Bank. The ld. AR referred to page 102 of the paper book and submitted that the case of assessee was selected for scrutiny on the basis of reasons contained therein. He argued that the assessee submitted all the requirements as sought by the AO in assessment proceedings in terms of reason No. 1 relating to claims under Chapter VI-A. Further, he referred to page 99 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question was not credited to the profit and loss account and the assessee did not file income tax return and computation before this Tribunal. Further, the assessee did not claim the deduction in return of income. Referring to the contentions made with regard to pages 99, 91, and 80, he submitted that the assessee made no specific claim u/s. 80P2(d) of the Act. The AO without examining the details of said claim, accepted the submissions of assessee straightway and allowed deduction which is a lack of enquiry as rightly held by the Pr. CIT. Further, the ld. DR prayed to take on record written submissions filed by him. He referred to decision of Hon'ble High Court of Bombay in the case of CIT Vs. Ballarpur Industries Ltd. reported in (2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee showing the claim u/s. 80P2(d) of the Act. In page 99 of the paper book at Q. No. 18 it was sought the details of tax free income earned in support of claim as deduction. In reply to the said question the assessee furnished the interest of Rs. 3,35,14,068/- from Latur District Central Co-operative bank and interest of Rs. 38,86,163/- and dividend of Rs. 4,00,328/- from Vikas Sahakari Bank Ltd., wherein we note that no specific deduction u/s. 80P2(d) of the Act was claimed. Further, in reply to the notice u/s. 142(1) of the Act dated 28-09-2015 we note that the assessee made claim u/s. 80P of the Act. Thereby, the record furnished before us regarding the assessment proceedings clearly shows the assessee made no specific claim u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is entirely different and that is the banking business, which is governed and regulated by the provisions of the Banking Regulation Act, 1949. Only the Primary Agricultural Credit Societies with their limited work of providing credit facility to its members continued to be governed by the ambit and scope of deduction under Section 80P of the Act. 14. The banking business, even though run by a Co-operative bank is sought to be excluded from the beneficial provisions of exemption or deduction under Section 80P of the Act. The purpose of bringing on the statute book sub-section (4) in Section 80P of the Act was to exclude the applicability of Section 80P of the Act altogether to any co-operative bank and to exclude the normal banking busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80P of the Act. Even though a co- operative bank may have the corporate body or skeleton of a co-operative society but its business is entirely different and that is the banking business, which is governed and regulated by the provisions of the Banking Regulation Act, 1949. Therefore, it is clear the interest income earned from Co-operative Bank is sought to be excluded as exemption or deduction u/s. 80P(2)(d) of the Act. In the present case, the assessee is a Co-operative Society engaged in the business of manufacturing of sugar and by-products. As rightly argued by Shri Deepak Garg that the assessee is not under the activities of specified under Clause (d) or (b) of section 80P, but under Clause (c), as discussed above the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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