Ghazipur Zila Sahakari Sangh Ltd., Ghazipur V. Dy. CIT, Cir. - 03, Varanasi

ITA 43/ALLD/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9027 (ITAT-VARANASI)
• Duration Of Justice: 4 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARISH GIDWANI
• Keywords: Set aside
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH ‘SMC’ VARANASI [Through Virtual Hearing] BEFORE SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA No.43/Alld/2018 Assessment Year 2014-15 DCIT, Circle-III, Varanasi Vs. Ghazipur Zila Sahakari Sangh Ltd., Station Road, Ghazipur 233001 (U.P.) PAN –AAABG0220G (Respondent) (Appellant) Shri Subhash Chand, Advocate Appellant by Shri Harish Gidwani, DR Respondent by 07/02/2022 Date of hearing 10/02/2022 Date of pronouncement O R D E R PER: T.S. KAPOOR, A.M: This is an appeal filed by the assessee against the order of ld. CIT(A), Varanasi dated 12.12.2017. The grounds of appeal taken by the assessee are reproduced below: “1. Because the learned Assessing Officer has erred and acted illegally in not allowing the following deduction u/s 80P of the Act to the assessee, detail as under:- a. Rent from godown Rs.89,887/- u/s(2)(e) of the Act. b. Transportation of fertilizers Rs.12,223,11/- 80P(2)(a)(iv) of the Act. The ld. CIT(A) has erred and acted illegally in confirming the same.” 2 ITA No.43/Alld/2018 2. The ld. AR at the outset submitted that assessee is a Cooperative society the income of which is exempt u/s. 80P of the Act and during the year under consideration the gross income received by the assessee included rent from godowns and receipt from transportation. It was submitted that both these incomes has not been considered by the authorities below for claim u/s.80P which is not in accordance with law and in this respect my attention was invited to provisions of Section 80P of the Act and it was submitted that since the income of the assessee included income from letting of godown, the same was exempted u/s. 80P(e) of the Act was applicable and similarly transportation charges were covered under sub clause (f) of Section 80P and therefore the same has been wrongly sustained by the ld. CIT(E). 3. The ld. DR, on the other hand, submitted that under sub clause (2) of Section 80P, the exemption u/s. 80P has been classified under head a to f, wherein the various types of cooperative societies are eligible for various classes of income and therefore the assessee cannot claim the exemption under sub clause (4) of clause (a) as well as clause (e) and (f). It was submitted that it is not coming from record as to in which class the activities of society fell and therefore it was prayed that the matter may be set aside to Assessing Officer for allowing the claim of the assessee after verifying the category in which the assessee falls. 4. I have heard the rival parties and have perused the material placed on record. I find that it is a fact that assessee is cooperative society and it claimed NIL income after claiming exemption u/s 80P of the Act. The income of the assessee included various heads of income including transportation and rent. However, the activities in which the assessee is engaged is not coming out of the records. Clause a to f relates to various types of cooperative societies on the basis of their working and against which there is exemption of various classes of income. Therefore, I deem it appropriate to remit the matter back to Assessing Officer who after verifying the nature of activities of the assessee will reexamine the claim of the assessee and will allow the same in accordance with law. 3 ITA No.43/Alld/2018 5. In the result, the appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open court on 10/02/2022 in accordance with Rule 34(4) of the I.T.A.T. Rules.) Sd/- (T.S. Kapoor) Accountant Member Aks – Dtd. 10/02/2022 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File