sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
From the Courts »
 Anupam Sushil Garg, S/o Shri Vijay Garg, C/o Venus Cinema, Railway Road, Saharanpur. vs. Income-tax Officer, Ward-2, Saharanpur.
 Oriental Building & Furnishing Co.Ltd. C/o. Ravi Gupta, Advocate E-6A, Kailash Colony New Delhi vs. DCIT Circle-13(1) New Delhi.a
 Housing Board Haryana, Panchkula, Haryana
 Broadcast Engineering Consultants India Limited, Multi Location, Multi State
 Ranjana Sen Gupta Raghavan, H-1592, Chittaranjan Park, New Delhi-110019 vs. Income Tax Officer, Ward-71(2), New Delhi
 M/s Sony India Private Limited A-31 , Mohan Cooperative Industrial Estate New Delhi -44 vs. The Deputy Commissioner of Income tax , Circle 24 (1), New Delhi
 Manik Singh S/o. Dr. Meharban Singh, A-47, Sector-31, Noida Uttar Pradesh Noida vs. DCIT Room No. 408, 4th Floor, A- 2D, Aayakar Bhawan, Sector-24 Noida
 Nikon India ( P ) Ltd plot number 71, sector 32, institutional area Gurugram Haryana vs. The Deputy Commissioner of Income tax , Circle 3, Gurugram
 Coal India Limited, Ranchi, Jharkhand
 Arun Kumar vs. ACIT (ITAT Delhi)
 PCIT vs. Shodiman Investments Pvt. Ltd (Bombay High Court)

M/s District Cooperative Bank Limited, Civil Lines-II, Bijnor. Vs. Assistant Commissioner of Income Tax,Najibabad.
August, 12th 2014
                                   `B' : NEW DELHI
                      DELHI BENCH `B

                                GARG, JUDICIAL MEMBER

                      Nos.2984/Del/2013 & 2985/Del/2013
                  ITA Nos
                              Years : 2009-
                   Assessment Years             2007-08
                                      2009-10 & 2007-

M/s District Cooperative          Vs.    Assistant Commissioner of
Bank Limited,                            Income Tax,
Civil Lines-                             Najibabad.
     (Appellant)                             (Respondent)

                Appellant by      :     Shri P.S. Kashyap, CA.
                Respondent by     :     Smt. Parwinder Kaur, Sr.DR.


       These appeals by the assessee are directed against the order of
learned CIT(A), Bareilly dated 1st March, 2013 for the AY 2009-10 &

2.     The only ground raised in both these appeals by the assessee is
for   seeking    exemption   of   dividend    received   by   the   assessee
cooperative society amounting to `70,56,000/- for AY 2007-08 and
`3,06,200/- for AY 2009-10.

3.     Since the facts in both the years are almost similar, we shall deal
herein below the facts relating to AY 2007-08.

4.     For the year under consideration, the assessee received the
dividend of `70,56,200/- from the following three companies:-
                                      2                  ITA-2984 & 2985/D/2013

(i)     `67,50,000/-            U.P. Coop. Bank Ltd.
(ii)    `1,00,000/-             KRIBHCO
(iii)   `2,06,200/-             Indian Fertilizers.

5.      The assessee claimed the same to be exempt which was denied
by the Assessing Officer and learned CIT(A). Hence, this appeal by the

6.      We have heard the arguments of both the sides and perused
relevant material placed before us. At the time of hearing before us,
learned counsel fairly conceded that the dividend is not exempt under
Section 10(34) read with Section 115-O because the companies from
whom the assessee received the dividend has not paid dividend
distribution tax.      His claim is that the dividend received by the
assessee company is exempt on account of mutuality because those
companies which paid dividend to the assessee are also either
cooperative banks or the companies which are basically rendering
services to the cooperative societies.      We are unable to accept the
contention of the assessee. When the assessee claims any exemption
on the ground of mutuality, the burden is upon the assessee to
establish so. In this case, the learned counsel could not justify how the
dividend received by the assessee from three different companies is
covered under the concept of mutuality. The assessee has received
the dividend on account of assessee's investment in those companies.
The dividend is not the contribution to the assessee by those
companies and moreover, the assessee is not rendering services to
them. In view of the above, we hold that the assessee's contention
that dividend received from those companies is exempt on account of
mutuality is untenable. The same is rejected.
                                    3                    ITA-2984 & 2985/D/2013

7.    The facts are similar in AY 2009-10 with the only difference in the
quantum of dividend which is `3,06,200/- instead of `70,56,000/- in AY
2007-08. For the detailed discussion in paragraph 6 above, we hold
that the dividend received in AY 2009-10 also cannot be said to be
exempt within the concept of mutuality. Accordingly, the appeals of
the assessee in both the years are dismissed.

8.    In the result, the appeals of the assessee are dismissed.
      Decision pronounced in the open Court on 8th August, 2014.

                  Sd/-                                 Sd/-
     (CHANDRA MOHAN GARG)                             AGRAWAL)
                                                (G.D. AGRAWAL
        JUDICIAL MEMBER                         VICE PRESIDENT

Dated : 08.08.2014

Copy forwarded to: -

1.    Appellant    : M/s District Cooperative Bank Limited,
                        Lines-II, Bijnor.
                  Civil Lines-

2.    Respondent : Assistant Commissioner of Income Tax,
3.    CIT
4.    CIT(A)
5.    DR, ITAT

                              Assistant Registrar
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions