THE COIMBATORE AGRICULTURAL PRODUCERS CO-OP MARKETING SOCIETY LTD.,COIMBATORE V. DCIT, NCC-2, COIMBATORE

ITA 2897/CHNY/2024

AI Insights

The case involves The Coimbatore Agricultural Producers Co-operative Society Ltd, which appealed against the order of the Commissioner of Income Tax (Appeals) NFAC Delhi, which had confirmed the disallowance of deductions claimed under section 80P(2)(a)(iii) and section 80P(2)(c)(ii) of the Income Tax Act for the Assessment Year 2022-2023. The AO had disallowed these deductions on the grounds that the society failed to provide documentary evidence that it was marketing agricultural produce grown by its members and also did not substantiate the claim related to income from running a Fair Price Shop. The Tribunal found merit in the assessee's request for a de novo assessment and remanded the case back to the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29248 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P. VIJAIDEEPAN; IRS
• Assessee Lawyers: S. BHUPENDRAN; VIRTUAL
• Section: 80P

Judgement Text

" आयकर अपीलीय अिधकरण ‘ए’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं माननीय ŵी जगदीश, लेखा सद˟ क े समƗ। BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपील सं./ ITA No.2897/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2022-2023) The Coimbatore Agricultural Producers Co-operative Society Ltd, Siruvani Road, Telungupalayam, Coimbatore 641 039. [PAN: AAAAT 6922H] Vs. The Deputy Commissioner of Income Tax, Non Corporate Circle 2, Coimbatore (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri S. Bhupendran, Adv (Virtual) Ĥ×यथȸ कȧ ओर से /Respondent by : Shri. P. Vijaideepan, IRS, JCIT. सुनवाई कȧ तारȣख/Date of Hearing : 13.02.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 14.03.2025 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member) The captioned appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) NFAC Delhi [CIT(A)] dated 11.09.2024 for Assessment Year 2022-2023. 2. Brief facts are as under: The facts of the case are that the assessee is a Co-operative Marketing Society. In assessment, AO disallowed an amount of Rs.2,96,93,788/- claimed by 2 ITA No.2897/Chny/2024 the assessee under section 80P(2)(a)(iii). The AO observed that as per the provisions of that section, deduction is allowable on the marketing of agricultural produce grown by members of the Society. As per show cause notice issued by the AO in this regard, the assessee was required to furnish documentary evidence that the assessee society is marketing the agricultural produce grown by its members. However, no documentary evidence was furnished to prove that the society is marketing the agricultural produce grown by its members only. Further, no material has been submitted to show how deduction u/s 80P is available to the appellant in respect of the claim now made that assessee is running Fair Price Shop and Rice and Wheat Margin money be treated as exempt u/s 80P. Further, the assessee claimed deduction of Rs.1,00,000/- u/s 80P(2)(c)(il) of the Act. During assessment, the AO denied the deduction since no reply had been submitted with respect to the show cause notice issued by the AO to substantiate the said claim. The assessee challenged the order of the AO before the ld. CIT(A) who confirmed the order of AO.Aggrieved assessee is in appeal before us. 3. The ld. counsel for the assessee submitted that in appeal before the ld. CIT(A), the assessee has stated that the claim made under the said sub-section is an inadvertent mistake and the appellant, in respect of such income, which is shown in the Trading and P&L account under Trade income, claims the same as Rice and Wheat Margin money. The appellant has submitted that as the activity of running Fair Price Shop is not on its own but as per the mandate of the state Government, any income arising therefrom falls within the scope and ambit of \"attributable to\" as envisaged in section 80P. 3 ITA No.2897/Chny/2024 4. Per contra, the ld. DR, stated that the impugned order is decided as per law and the assessee in appeal for the first time shifting their stance hence, prayed for dismissal of appeal. 5. We have heard the both parties and perused the orders of the lower authorities. In the interest of justice, we find are of the view that matter may be remanded back to the file of AO for re-consideration the claim denovo under proper sections as stated above by the assessee. Therefore, AOis directed to proceed with denovo assessment after considering the claim of deduction u/s 80P(2)(a)(i) and 80P(C)(ii). The ld.AO shall proceed for denovo assessment after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents regarding claim of deduction u/s 80P(2)(a)(i) and 80P(C)(ii), if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the assessment proceedings on merits as per law. 6. In result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14th day of March, 2025 at Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद˟ / ACCOUNTANT MEMBER (मनु क ुमार िगįर) (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 14-03-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Coimbatore 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "