2018 (7) TMI 211

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.....2.2016 framed by Additional ACIT, Circle 4(1), Indore. 2. The sole grievance of the assessee in this appeal is that the learned Commissioner of Income Tax (Appeals) was not justified in confirming the action of the Assessing Officer in denying the benefit of section 80P(2)(a)(i) of the Act for the interest earned on bank deposits. 3. Briefly stated, the facts, as culled out from record, are that the assessee is a cooperative society engaged in providing credit facilities to its members. E-return of income filed on 25.9.2013 showing total income at Rs. Nil after claiming deduction of Rs. 1,56,16,642/- u/s 80P of the Act. Case selected for scrutiny through CASS. Necessary notices u/s 143(2) and 142(1) of the Act were served upon the as....

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....t in that case the issue related to surplus funds whereas in the present case the issue relates to the fund mandatorily required to be maintained by the assessee society to cover up various reserve funds and other funds. The learned counsel for the assessee referred to following judgments :- 1. Tumkur Merchants Souharda Credit Coop. Ltd. Vs. ITO; (2015) 230 Taxman 309 (Karn.) 2. CIT vs. Tiruchengode Agricultural Producers Coop. Marketing Society Ltd. (2016) 96 CCH 112 3. Baliraja Gramin Bigarsheti vs.ITO, ITAT Pune (2018) 52 CCH 247 4. ITO Ward-1 Sirsi vs. M/s The Totagar's Rural Cooperative Agricultural Credit Society Ltd.; ITAT SMC Bench -C, Bangalore 5. ITO vs. Lokopayogi Illakhe and Karnataka....

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....at FDR investment in Banks stood at Rs. 14,37,72,261/- and under the head 'capital' a sum of Rs. 12,64,30,656/- is shown and the details of this sum relate to the following heads :- Details of funds Rs. Rs. Share Capital 19891159   Reserve Fund 20758196   Depreciation fund 763052   Education fund 791038   Building fund 1752181   Gratuity Fund 1512420   Kalyan Nidhi 61468298   Dividend equalization fund 201125   Dividend fund 5061214   Profit fund 1517177   Credit fund 1517182   Festival fund 215458   Profit and loss account 10439468   Dead Stock fund....