Tribunal denies deduction for toddy sales income under section 80P(2)(a)(vi)

The Tribunal upheld the CIT(A)'s decision to deny the deduction under section 80P(2)(a)(vi) of the Act to the assessee for the relevant assessment years, in line with the High Court's ruling that the society's income from toddy sales did not qualify for the deduction. The appeals by the assessee were dismissed, with the Tribunal finding no fault in the CIT(A)'s decision.

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Issues: Claim of deduction under section 80P(2)(a)(vi) of the Act.

Analysis:
The judgment by the Appellate Tribunal ITAT Cochin involved appeals by the assessee regarding the claim of deduction under section 80P(2)(a)(vi) of the Act. The Tribunal carefully considered the submissions from both sides and reviewed the orders of the tax authorities. It was noted that a similar issue had been decided by the Hon'ble Jurisdictional High Court in the case of the assessee for the assessment years 2008-09 and 2009-10. The High Court had previously held that the society in question, involved in the purchase and sale of toddy through toddy shops, was not entitled to the benefit of section 80P(2)(a)(vi) of the Act. The High Court's decision emphasized that the income of the society did not arise from the collective disposal of labor but from the sale of toddy through its own shops. Even though toddy was collected from non-members, the society's income was primarily derived from the sale of toddy. Consequently, the Tribunal upheld the order of the CIT(A) denying the deduction under section 80P(2)(a)(vi) to the assessee for the relevant assessment years, following the precedent set by the High Court's decision in the assessee's own case.

Therefore, the Tribunal confirmed the dismissal of the appeals by the assessee, aligning with the High Court's ruling and finding no fault in the CIT(A)'s decision to deny the deduction under section 80P(2)(a)(vi) of the Act. The judgment was pronounced in open court on 26/09/2017.

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