Tribunal held that the computation mechanism for payment of bonus and dividend were different but both were towards distribution of net profit of the Federation. Dividend is only a distribution of the net profits. The nature of bonus received by the assessee from the Federation was nothing but dividend although the mechanism of its computation was different because both bonus and dividend were paid to the assessee as distribution of net profits only. The Assessing Officer was directed to consider the amount of bonus received by the assessee from the Federation as dividend received from the Federation and allow deduction Under Section 80P(2)(d) in respect of receipt of bonus also .( AY.2014-15)
Mysore District Co-Operative Milk Producers Society Union Ltd. v. A CIT (2020)82 ITR 11 (SN)(Bang) (Trib)
S. 80P : Co-operative societies – Member of Federation- Bonus- Dividend —Bonus to be considered as dividend- Assessing Officer is directed to verify the nature of the bonus received .[ S.80P(2) (d)