| |
| The Tax Publishers2019 TaxPub(DT) 6542 (Rkt-Trib) : (2019) 179 ITD 0690 : (2020) 204 TTJ 0072 : (2019) 075 ITR (Trib) 0339 INCOME TAX ACT, 1961
Section 80P(2)(b)
Though assessee was not the primary co-operative society however, its activities were depending on primary co-operative societies. As such primary co-operative societies could also not operate without assessee being a district level society and as such activities of assessee were interlinked with activities of primary co-operative societies. Moreover, primary co-operative societies would be eligible only when they supply milk to a federal co-operative society. The assessee was not federal co-operative society to whom these primary cooperative societies were supplying milk. Thus, even primary cooperative societies in the given facts and circumstances would not be eligible to enjoy benefit of the deduction under section 80P(2)(b). Thus in such a situation provisions of section 80P(2)(b) should be read liberally. Besides assessee had been claiming deduction under section 80P(2)(b) consistently for the last several assessment years and there was no disallowance made by AO. Accordingly, assessee was eligible for deduction under section 80P(2)(b).
|
Deduction under section 80P(2)(b) - Allowability - Assessee being district level co-oprative society and not a primary co-operative society -
Assessee was a district level cooperative society having 646 members being primary co-operative societies. These primary co-operative societies having the members such as farmers, their family members and other rural family unit. Procuring milk from the members and in turn supplying to assessee being a single society in the district. Thereafter the assessee is supplying the milk to the mother dairy. Assessee further claimed that all the activities involved in supply of milk to the mother dairy are controlled as per the direction of Gujarat Milk Marketing Federation. Accordingly assessee claimed to be eligible for deduction under section 80P(2)(b). AO denied this on the ground that such deduction was available to primary co-operative societies and not to district level society.Held: Though assessee was not the primary co-operative society however, its activities were depending on primary co-operative societies. As such primary co-operative societies could also not operate without assessee being a district level society and as such activities of assessee were interlinked with activities of primary co-operative societies. Moreover, the primary co-operative societies would be eligible only when they supply milk to a federal co-operative society. The assessee was not federal co-operative society to whom these primary cooperative societies were supplying milk. Thus, even primary cooperative societies in the given facts and circumstances would not be eligible to enjoy benefit of the deduction under section 80P(2)(b). Thus, in such a situation provisions of section 80P(2)(b) should be read liberally. Besides assessee had been claiming deduction undr section 80P(2)(b) consistently for the last several assessment years and there was no disallowance made by AO. Accordingly, assessee was eligible for deduction under section 80P(2)(b).
 SUBSCRIBE FOR FULL CONTENT
|