TaxTMI 
TaxTMI 
2022 (9) TMI 715
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....- towards additional interest provision on RID CTD which is allowable as per Bye-Law. 5. The CIT disallowed the reserve fund, education fund and common fund debited to P&L A/c which is mandatory to create as per A.P. State Coop. Act. 6. The learned CIT (A)-I erred in not allowing deduction u/s 80P(2)(a)(i) of the I.T. Act, 1961. 7. Any other ground or ground(s) that may be urged at the time of hearing of appeal". 3. At the time of hearing, the learned Counsel for the assessee did not press grounds of appeal 1 & 2 for which the learned DR has no objection. Accordingly, the above two grounds are dismissed as not pressed. Grounds of appeal No.7 being general in nature is dismissed. 4. So far as grounds of appeal No.3 to 5 are concerned, these relate to the order of the learned CIT (A) in confirming the action of the Assessing Officer in making addition of Rs.99,95,270/- towards additional interest provision on compulsory thrift deposits, Rs.58,96,831/- towards additional interest provision on RID CTD and disallowance of reserve fund, education fund and common fund debited to P&L A/c. 5. Facts of the case, in brief, are that the assessee is a coopera....
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....-Mr. Madhusudhan Reddy discussing on the report.... Jobs. He also pointed out that the giving of dividend on share capital was more attractive to the members than the present system of giving additional interest. He was of the opinion that in the present system the new members get that much benefit as compared senior members. He was suggesting that more attractive and useful gifts may be given to the members. Smt. Vijaya Bhaskar discussing on the report also opined that the old system of giving dividend and attractive gifts is more beneficial to the members". 4. It is amply clear from the above; the assessee society resorted to a novel method of crediting the dividend on share capital out of profits made during the year in the guise of additional interest on Compulsory Thrift Deposits and Reinvested Compulsory Thrift Deposits. 5. Income accrued and reached the society is applied to discharge self-imposed obligation or gratuitous". 9. Thus, the Assessing Officer determined the total income of the assessee by disallowing the provision of Rs.99,95,270/- towards additional interest on CTDs and provisions made of Rs.58,96,831/- towards additional interest o....
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....ling a revised return of income and revised computation or income. We have followed the general method of accounting and filed the return without claiming the deduction u/s. 80P of income Tax Act, 1961. We are ignorant of that provision during the A. Y.2010-11. The learned A.0. added back the additional interest to the income offered. In this connection, we have taken the expert advice and offering additional interest paid as an income. Therefore, we request your Hon'ble selves to allow deduction u/s 80P o the I.T. Act and complete the assessment." The revised computation of income filed by the assessee is as under: 1. Profits and gains from business &profession Rs.1,59,55,667 2. Income from other sources Rs. 8,06,385 Gross total income Rs.1,67,62,052 Less: Deduction u/s.80P : Rs.1,59,55,667 Taxable income Rs. 8,06,385" 15. Similarly, for the A.Y 2013-14, the Assessing Officer passed the order on 21.3.2016. The assessee was also confronted identical issues and the assessee had offered the additional income. The relevant observation of the Assessing Officer reads as under: "During the course o....
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.... Hon'ble' selves to allow deduction u/s. 80P of IT. Act 1961 and complete the assessment. Hence we requested your good selves to verify the same and complete the assessment accordingly. We have offered interest receivable & accrued interest on bank deposits The revised computation of income filed by tine assessee is as under: (1) Profits and Gains from Business and Profession Rs.142.85.529/- (2) Income from Other sources Rs 61.98.860- Gross Total Income Rs.2,04,84,389/- Less Deduction under chapter-VIA (80 P) Rs.142.85.529/- Taxable Income Rs. 61,98,860/-" Subject to the above, the income of the assessee is computed as under: Income returned Rs. Nil Add: Income from other sources: Rs.61,98,860/-" 17. Under these circumstances, we do not find any infirmity in the order of the learned CIT (A) in confirming the additions made by the Assessing Officer. 18. In Ground of appeal No.6, the assessee is challenging the order of the learned CIT (A) in not allowing deduction u/s 80P of the I.T. Act. 18.1 After hearing both the sides, we find that although this ground was raised before the learned CIT (A), however, he reje....