A 1235 Madurai Taluk Agricultural Producers Co-operative Marketing Society Limited, Madurai V. NFAC , DELHI

ITA 656/CHNY/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0441 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 23-05-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI ी महावीर िसंह, माननीय उपा , एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.656/Chny/2023 िनधा रण वष /Assessment Year: 2018-19 A 1235 Madurai taluk Agricultural- Producers Co-operative- Marketing Society Ltd., 31, Visuvasapuri, 3 rd Street, Gnanaolivupuram, Madurai. [PAN: AAAAA 9671 J] v. The Income Tax Officer, Non-Corporate Ward-1(1), Madurai. (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : None यथ क ओर से /Respondent by : Shri AR.V.Sreenivasan, Addl.CIT सुनवाई क तारीख/Date of Hearing : 30.10.2023 घोषणा क तारीख /Date of Pronouncement : 30.10.2023 आदेश / O R D E R PER MANJUNATHA.G, AM: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi, dated 24.03.2023, and pertains to assessment year 2018-19. 2. The assessee has raised the following grounds of appeal: 1) The order of the learned CIT(A) is bad and erroneous in law. ITA No.656/Chny/2023 A 1235 Madurai taluk Agricultural Producers Co-op. Marketing Society Ltd :: 2 :: 2) The learned CIT(A) erred in not considering the replies filed by the appellant in proper perspective. 3) The learned CIT(A) erred in restricting the deduction claimed u/s. 80P(2)(c) at Rs.50,000/-, without considering the effect of the decision of the SC reported in 1981 (4) SCC 535, wherein the societies involved in PDS activities were termed/classified as "Consumer Societies". 4) The learned CIT(A) erred in not considering the fact that the PDS margin, related to the PDS activities of the appellant, is attributable to the other activities of the appellant society, falling within Section 80P(2)(a)(i). [Reliance is placed on the decisions by the Madras HC reported in TCA No: 1453 of 2008 dated 31/10/20-18 and TCA No: 571 of 2011 dated 01/11/2018.] 5) Without prejudice to the above, the learned CIT(A) erred in disallowing the deduction claimed in respect of PDS margin, falling within "Commission", without considering the decision reported in 1995 Tax L.R. 1308 (i.e.) CIT vs. The Coimbatore District Central Co- operative Supply and Marketing Society Limited. And for other reasons that may be adduced at the time of hearing, the appellant prays that this appeal be admitted, considered and justice be rendered. 3. The brief facts of the case are that the assessee is a Co-Operative Marketing Society filed its return of income for AY 2018-19 on 25.10.2018 declaring ‘nil’ total income after claiming exemption u/s.80P(2)(a)(i) of the Income Tax Act, 1961 (in short “the Act"). The case was selected for scrutiny and during the course of assessment proceedings, the AO noticed that the assessee has derived commission income from Public Distribution System as an Agent of Tamil Nadu Civil Supplies Cooperation, amounting to Rs.1,00,000/- and claimed exemption u/s.80P(2)(c) of the Act. The AO after considering relevant submissions of the assessee opined that the assessee is not a Consumer Co-operative Society, to be fall under Clause (i) of Section 80P(2)(c) of the Act, and thus, restricted deduction to Rs.50,000/- under clause (ii) to Section 80P(2)(c) of the Act. On appeal, the Ld.CIT(A) rejected the arguments of the assessee and sustained the additions made by the AO towards disallowance of deduction claimed u/s.80P(2)(c) of the Act. ITA No.656/Chny/2023 A 1235 Madurai taluk Agricultural Producers Co-op. Marketing Society Ltd :: 3 :: 4. None appeared for the assessee. We have heard ld.DR and perused relevant materials available on record, including the order of the AO and the Ld.CIT(A). We find that the assessee has failed to file necessary evidences to prove that it falls under Clause (i) to Sec.80P(2)(c) of the Act, to be eligible for deduction of Rs.1,00,000/- towards income derived from marketing activities. On the other hand, lower authorities have brought out clear facts to the effect that the assessee’s case falls under Clause (ii) of sec.80P(2)(c) of the Act, and allowed deduction to the extent of Rs.50,000/-. In our considered view, there is no error in the reasons given by the Ld.CIT(A) to restrict deduction allowed u/s.80P(2)(c) of the Act, and thus, we are inclined to uphold the findings of the Ld.CIT(A) and dismiss the appeal filed by the assessee. 5. In the result, appeal filed by the assessee is dismissed. Order pronounced on the 30 th day of October, 2023, in Chennai. Sd/- (महावीर िसंह) (MAHAVIR SINGH) उपा /VICE PRESIDENT Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 30 th October, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ / Appellant 3. आयकर आयु" / CIT 5. गाड फाईल / GF 2. यथ / Respondent 4. िवभागीय ितिनिध / DR