Waddera Labour Contract Co-operative Society Ltd., Warangal Dt, Hyd, Warangal V. ITO, Ward-3, Warangal, Warangal

ITA 1200/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6097 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-03-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 12-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MOHAN REDDY

Judgement Text

1 ITA.NO.1200/HYD/2016 M/S. WADDERA LABOUR CONTRACT COOPERATIVE SOCIETY LTD., WARDHANNAPET, WARANGAL DI STRICT. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.1200/HYD/2016 ASSESSMENT YEAR 2010-2011 M/S. WADDERA LABOUR CONTRACT COOPERATIVE SOCIETY LTD., WARDHANNAPET, WARANGAL DISTRICT. PAN AAAAW0556C VS. THE INCOME TAX OFFICER WARD-3, WARANGAL. (APPELLANT) (RESPONDENT) FOR ASSESSEE : -NONE- FOR REVENUE : SHRI MOHAN REDDY DATE OF HEARING : 09.03.2017 DATE OF PRONOUNCEMENT : 09.03.2017 ORDER PER D. MANMOHAN, V.P. THIS APPEAL BY THE ASSESSEE-SOCIETY IS DIRECTED AG AINST THE ORDER PASSED BY THE CIT(A)-3, HYDERABAD AND IT PERTAI NS TO THE A.Y. 2010-2011. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS WITH REGARD TO THE CLAIM OF DEDUCTION UNDER SECTION 80P OF THE I.T. ACT, 1 961. 2. FACTS NECESSARY FOR THE DISPOSAL OF THIS APPEAL AR E STATED IN BRIEF. THE ASSESSEE IS A COOPERATIVE SOCIETY. FOR THE YEAR UNDER CONSIDERATION, IT DECLARED NIL INCOME AFTER CLAIMING DEDUCTION IN CHAPTER-VIA TO THE TUNE OF RS.4,15,385. IT APPEARS THAT TH E CASE OF THE ASSESSEE IS THAT IT WAS ENGAGED IN THE ACTIVITY OF COLL ECTIVE DISPOSAL OF THE LABOUR OF ITS MEMBERS AND THEREFORE, IT IS ENTITLED TO DEDUCTION UNDER SECTION 80P OF THE ACT. 2 ITA.NO.1200/HYD/2016 M/S. WADDERA LABOUR CONTRACT COOPERATIVE SOCIETY LTD., WARDHANNAPET, WARANGAL DI STRICT. 3. SINCE THE CASE WAS TAKEN-UP FOR SCRUTINY, THE A.O. CALLED- UPON THE ASSESSEE TO FURNISH DETAILS EVIDENCING THE CLA IM. THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT, BILLS, VOUCHERS ETC., IN THE ABSENCE OF ANY EVIDENCE THE CLAIM OF DEDUCTION UNDER CHAPTER-VIA WAS DISALLOWED BY THE A.O. 3.1. IT MAY BE NOTICED THAT THE A.O. HAD GIVEN SEVERAL OPPORTUNITIES BUT NO INFORMATION COULD BE FURNISHED BY THE ASSESSEE. 4. AGGRIEVED ASSESSEE PREFERRED AN APPEAL BEFORE TH E CIT(A) CONTENDING, INTER ALIA, THAT THE STATEMENT OF THE A.O. THAT TH E ASSESSEE HAS NOT FURNISHED BOOKS, BILLS, VOUCHERS IS INCORREC T. HOWEVER, EVEN BEFORE THE CIT(A), NONE APPEARED FOR THE ASSESSEE. A S PER THE RECORDS, IT IS SHOWN THAT MOST OF THE EXPENDITURE WAS INCURRED ON M ATERIAL AND NOT TOWARDS LABOUR. OUT OF ROUGHLY ONE CRORE EXPENDITURE, LABOUR EXPENDITURE WAS ONLY TO THE TUNE OF RS.8.5 LAKHS AND THE BALANCE WAS TOWARDS MATERIAL. THERE IS NOTHING ON RECORD TO SHOW TH AT THE INCOME OF THE SOCIETY WAS DISTRIBUTED AMONGST THE MEMBERS. UNDER TH ESE CIRCUMSTANCES, THE LD. CIT(A) AFFIRMED THE ACTION OF TH E A.O. BY HOLDING THAT THE ASSESSEE IS NOT ENTITLED TO DEDUCTION UNDER SECTI ON 80P OF THE ACT. 6. FURTHER AGGRIEVED ASSESSEE IS IN APPEAL BEFORE U S. SINCE THERE WERE DEFECTS IN THE APPEAL FILED, A DEFECT MEMO WAS ISSUED AND APPEAL WAS POSTED FOR HEARING ON 14.12.2016. SINCE N ONE APPEARED ON BEHALF OF ASSESSEE, ANOTHER NOTICE WAS ISSUED BY RPAD WHICH WAS ALSO SERVED UPON THE ASSESSEE AS PER THE ADDRESS GIVEN IN FORM-36. HOWEVER, NONE APPEARED EVEN ON 09.03.2017. WE, THEREFORE, PRO CEED TO DISPOSE OF THE APPEAL EX-PARTE, QUA THE ASSESSEE. 3 ITA.NO.1200/HYD/2016 M/S. WADDERA LABOUR CONTRACT COOPERATIVE SOCIETY LTD., WARDHANNAPET, WARANGAL DI STRICT. 7. THE LIMITED ISSUE IS WITH REGARD TO THE DENIAL OF D EDUCTION UNDER SECTION 80P OF THE ACT ON THE GROUND THAT THE PRELI MINARY BURDEN IS UPON THE PARTY WHO CLAIMED DEDUCTION AND IT HAS TO B E PROVED THAT THE ACTIVITY FALL WITHIN THE PARAMETERS OF 80P OF THE AC T. WHEREAS THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE EITHER BEFORE THE A.O. OR BEFORE THE CIT(A). THUS, THE LD. D.R. STRONGLY RELIED UPON T HE ORDER PASSED BY THE TAX AUTHORITIES. IT IS EVIDENT FROM THE RECORD THAT THE A SSESSEE WAS NON-COOPERATIVE AND NEVER APPEARED BEFORE THE A.O. OR CIT(A) AND EVEN BEFORE US. EVEN THE DEFECTS WERE NOT PROPERLY RECTIFIED . UNDER THESE CIRCUMSTANCES, WE ARE OF THE VIEW THAT DENIAL OF DEDUCTI ON UNDER SECTION 80P WAS IN ACCORDANCE WITH LAW. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09.03.2017. SD/- SD/- (B. RAMAKOTAIAH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 09 TH MARCH, 2016 VBP/- COPY TO 1. M/S. WADDERA LABOUR CONTRACT COOPERATIVE SOCIETY LTD ., WARDHANNAPET, WARANGAL DISTRICT. C/O. SHRI G.S. MADHAV A RAO & CO., CHARTERED ACCOUNTANTS, H.NO.11-26-54, M.G. RO AD, WARANGAL 506 002. 2. THE INCOME TAX OFFICER, WARD-3, WARANGAL 3. CIT(A)-3, HYDERABAD. 4. PR. CIT-3, HYDERABAD 5. D.R. ITAT B BENCH, HYDERABAD 6. GUARD FILE.