The Tax Publishers2019 TaxPub(DT) 6738 (Ind-Trib)

INCOME TAX ACT, 1961

Section 80P(2)(a)

Where AO denied deduction under section 80P(2)(a)(vi) on the ground that income of society had nothing to do with collective disposal of labour of its members and assessee contended that it was also engaged in providing marketing of agricultural produce grown by its members and if assessee was not eligible for one clause it would certainly be eligible for another clause of the same section and it was incumbent upon AO to provide deduction, if it was available, matter was remanded back to AO to consider all the submissions of assessee and to verify alternate claim of deduction under section 80P(2)(a)(iii) as made by assessee society.

Deduction under section 80P(2) - Allowability - Denial of deduction under clause (vi) of section 80P(2)(a) without considering alternate claim under clause (iii) -

Assessee, a cooperative society engaged in poultry farming claimed deduction under of Rs. 11,68,222 under section 80P(2)(a)(vi). AO denied deduction on the ground that income of society had nothing to do with collective disposal of labour of its members. Assessee contended that it was also engaged in providing marketing of agricultural produce grown by its members and if assessee was not eligible for one clause, it would certainly be eligible for another clause of the same section and it was incumbent upon AO to provide deduction, if it was available.Held: Matter was remanded back to AO to consider all the submissions of assessee and to verify alternate claim of deduction under section 80P(2)(a)(iii) as made by assessee society.

REFERRED : CIT v. The Royal Western India Turf Club Ltd. (1953) 24 ITR 551 (SC) : 1953 TaxPub(DT) 0127 (SC), M/s. Nileswar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham & Ors. v. CIT (2016) 380 ITR 34 (Ker) : 2016 TaxPub(DT) 0588 (Ker-HC), Nilagiri Engineering Co-operative Society Ltd. v. CIT & Ors. (1994) 208 ITR 326 (Ori) : 1994 TaxPub(DT) 1146 (Ori-HC)

FAVOUR : Matter remanded.

A.Y. : 2013-14 & 2014-15

IN THE ITAT, INDORE BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT