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2. Grounds of appeal raised by the assessee are as follows:

"1. The assessment order u/s 143(3) of the Act is bad in law.
Page | 1 ITA.234/RJT/2022 /AY.18-19 M/s Gondal Taluka Co-Op Sales & Purchase Union Ltd.
2. The learned Assessing Officer has erred in law as well as on facts in making the disallowance of deduction of Rs.35,12,640/- on account of non-eligibility of deduction u/s 80P Rs.1082,320/-"

4. During the assessment proceedings, the assessing officer noticed that the assessee received share dividend and bank interest, which is claimed u/s 80P(2)(d) of the Act. The share dividend of Rs.11,02,505/- was received from other co-operative societies on share investment. Bank interest income of Rs.13,64,890/- received by the assessee consists saving interest Rs.53,717/- and fixed deposit interest Rs.13,11,173/- received from co-operative bank. The assessing officer noticed that Rajkot DCCB, bank is registered under Bombay Co-operative Society Act, 1925. The Rajkot District Co-operative Bank Ltd was granted banking license by RBI on 14.09.1994. Hence, the amount received from Rajkot DCCB as share dividend and bank interest which is Page | 2 ITA.234/RJT/2022 /AY.18-19 M/s Gondal Taluka Co-Op Sales & Purchase Union Ltd.

Page | 9 ITA.234/RJT/2022 /AY.18-19 M/s Gondal Taluka Co-Op Sales & Purchase Union Ltd.
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From the above computation of total income and explanation of the total income submitted by the assessee, before the assessing officer, we find that assessee has shown, interest received from cooperative bank on fixed deposit, as income in profit and loss account,at Rs.18,41,436/-, (Vide assessee`s paper book page No.28), however the assessee has deducted, the said interest of fixed deposit of Rs.18,41,436/-, from its business income, in the computation of total income, ( vide assessee`s computation of total income on page No. 25 of the assessee`s paper book),and the amount of Rs.18,41,436/- is show by the assessee, in the computation of total income, under the head income from other sources,and claimed the deduction u/s 80P(2)(d) of the Act, at Rs.18,41,436/-. The assessee has also shown, under the head income from other sources, amount of Rs.52,350/-, as dividend received from Co-operative Bank and claimed the deduction u/s 80P(2)(d) of the Act.
(i) Totagars Co-operative Sale, 79 taxmann.com 169 (Karnataka)
(ii) Thorapadi Urban Co-operative Credit Society Ltd., 156 taxmann.com 419 (Mad.)

39. Final word:

Thus, we note that the judgement of the Hon'ble Supreme Court in the case of Tatgars Society Ltd. (supra) does not apply to the assessee under consideration, as Page | 19 ITA.234/RJT/2022 /AY.18-19 M/s Gondal Taluka Co-Op Sales & Purchase Union Ltd.