TaxTMI 
TaxTMI 
2015 (6) TMI 833
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....ailability of deduction under section 80P of the Act, which is the subject matter of dispute from A.Y. 2007-08 onwards. However, for A.Y. 2007-08 assessment was made on loss figure and even though the principle involved therein is under challenge and pending before the Tribunal, the Bench, which heard the stay petition pertaining to A.Y. 2008-09 onwards, did not consider it necessary to post the appeal on out of turn basis for A.Y. 2007- 08. Both the AO as well as the CIT(A) passed detailed orders, by independently considering the issue on merits, and hence a decision can be rendered independently in the appeals from A.Y. 2008-09 onwards. Thus the appeals pertaining to 2008-09 to 2011-12 are posted before the Bench. Assessment Year 2008-09 ....
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....b Vs CIT reported at 350 ITR 509, has held that the concept of mutuality shall not be extended to the interest incomes earned by a mutual association or a society. Accordingly, it was held that the interest incomes are exigible to the tax in the hands of the recipient. As observed, in this case, the appellant's income predominantly consists of interest income and profits from financing activities. In view of these distinguishing factors, this ground of appeal is hereby dismissed." 5. No material, whatsoever, was placed before us to highlight that the case of the assessee falls outside the canopy of the ratio laid down by the Hon'ble Apex Court (supra). Under these circumstances ground Nos. 4 & 12 are dismissed. 6. Vide ground Nos. 2 &....
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.... Act, which is inserted from A.Y. 2007-08, to observe that it is not applicable to cooperative societies carrying on the business of banking other than primary agricultural credit society or a primary cooperative agricultural and rural development bank. The AO, thus, concluded that the society was neither primary agricultural cooperative society nor a primary cooperative agricultural and rural development bank and hence exclusion intended under section 80P(4) is not applicable to the assessee. 8. Aggrieved, assessee contended before the CIT(A) that assessee was registered under the Maharashtra Cooperative Societies Act, 1960 in the year 2000 and it has its own bye-laws. It was also stated that it was not doing any banking activity as defin....
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....the Act. Assessee has to prove that it has undertaken primary level agricultural development activities. Both the parties admitted that the issue stands covered by the aforecited decision. In line with the view taken therein we set aside the matter to the file of the AO with a direction to him to consider as to whether the assessee is entitled to deduction under section 80P of the Act. Ordered accordingly. 10. Vide ground Nos. 5 to 10 the assessee raised several alternative contentions, which would subsist only if the assessee is not eligible for deduction under section 80P(2)(a) and (2)(d) of the Act. Since the main issue is set aside for fresh consideration, all the alternative contentions would be of academic importance and therefore, w....
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....l of such alternative grounds would be of academic importance. With the consent of both the parties we set aside these grounds to the AO for de novo adjudication without being influenced by the observations of the AO/CIT(A) in the impugned orders. It also deserves to be noticed that in para 7 of the order passed by the CIT(A), the learned CIT(A) observed that no disallowance was made by the AO in the assessment order and hence the grounds of appeal raised by the appellant become infructous. The plea of the assessee, on the other hand, was that there was no need for claiming deduction at the time of filing the return since the assessee was under the impression that it is eligible for exemption from tax under section 80P of the Act. It was co....
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....e do not find any merit in the contention of the assessee and therefore dismiss ground No. 4. 18. Vide ground Nos. 5 to 9 the assessee challenges the order passed by the AO as well as the CIT(A) which are connected to the alternative contentions made by the assessee in the event of non-granting of deduction under section 80P of the Act. For the reasons given by us in para 10 above, we hereby set aside the matter to the file of the AO for de novo consideration. Assessment Year 2011-12 19. Ground Nos. 1 and 9 are general in nature and therefore do not require independent consideration. 20. Vide ground No. 7 the assessee claims exemption of income earned by the assessee on the ground that principles of mutuality are applicable. For the reas....