Court No. - 35
Case :- INCOME TAX APPEAL No. - 56 of 2015 Appellant :- M/S District Cooperative Bank Ltd.
Respondent :- The Commissioner Of Income Tax And Another Counsel for Appellant :- Rohit Agarwal Counsel for Respondent :- C.S., Income Tax,Gaurav Mahajan,S.S.C. I.T.
Hon'ble Bharati Sapru,J. Hon'ble Neeraj Tiwari,J.
Heard Shri Rohit Agrawal, learned counsel for the appellant and Shri Gaurav Mahajan, learned counsel for the respondent.
This appeal under Section 260-A of the Income Tax, 1961(hereinafter referred to as the 'Act') has been filed by the appellant against the order of the Income Tax Appellate Tribunal dated 08.08.2014 for the assessment year 2007-08. The questions of law sought to be answered as as hereunder:
(i) Whether in the facts and circumstances of the case and law, the ITAT was justified in not granting exemption of dividend received by the assessee cooperative society from other cooperative societies on the principles of mutuality?
(ii) Whether in the facts and circumstances of the case, the ITAT was justified in not applying the principles of mutuality as laid down by the Hon'ble Apex Court in CIT Vs. Bankipur Club Ltd?
(iii) Whether in the facts and circumstances of the case, the ITAT was justified in treating the three cooperative societies from whom the dividend was received by the appellant society as company and thereby disallowing the deduction on the dividend income?"
Both the CIT (Appeals) as well as the Tribunal have conclusively come to the finding of fact that the assessee was not able to establish on facts issue relating to mutuality. On the contrary the CIT (Appeals) while discussing the matter at length has held that the assessee was not carrying on only activities between the two cooperative societies but was engaged in the general banking business. Such being the finding of fact, the questions of law are decided in favour of the revenue and against the assessee.
The appeal stands dismissed.
Order Date :- 26.2.2018/pks