TaxTMI 
TaxTMI 
2015 (4) TMI 141
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....nd circumstances of the case of the appellant. 2. That the appellant is a Cane Development Council Govern by U.P. Cane Development Department established by the order of the cane commissioner Uttar Pradesh it works under the guide lines laid down by the cane commissioner. The assessee is the marketing of agricultural produce and development of Sugar Cane. 3. That the appellant Cane Development Council engaged in the business of credit facilities to its members. Who are cane growers (Agriculturists) to ensure regular supply of cane from the members to Sugar Mills and to procure the payment from Sugar Mills from th....
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..... 2. Though various grounds are raised, but they all relate to the denial of deduction under section 80P(2)(a)(iii) of the Income-tax Act, 1961 (hereinafter called in short "the Act") by the Assessing Officer as well as the ld. CIT(A) on the ground that the assessee is not registered under the Cooperative Society's Registration Act and is therefore not a Co-operative Society which alone is eligible for deduction under section 80P(2)(a)(iii) of the Act and secondly because the assessee was not engaged in the marketing of agriculture produce grown by its members. 3. The facts in brief borne out from the record are that the assessee has claimed deduction under section 80P(2)(a)(iii) of the Act, which was disallowed by the Assessing Officer b....
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....e shape of commission from sugar mill amounting Rs. 18,42,269/- not treated as exempt. Further, assessee has shown income from interest amounting to Rs. 2,24,560.29. This income is also not exempt u/s 80P." 4. Aggrieved, the assessee preferred an appeal before the ld. CIT(A), but did not find favour with him and the disallowance of deduction was confirmed by the ld. CIT(A). 5. Now the assessee is before us with the submission that the assessee Council is a body established by the order of the Cane Commissioner, Uttar Pradesh. It works under the guidelines laid down by the Cane Commissioner, Uttar Pradesh. It helps Ganna Grover (Kissan) in the production and development of sugarcane and to give advice to mill owners as well as the Governme....
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.... to by the ld. counsel for the assessee, the assessees were Co-operative Societies and were also engaged in the agricultural credit activities with its members. Therefore, the facts in those cases are not similar to the facts involved in the instant case and no assistance can be drawn from those cases in favour of the assessee. 8. Having given a thoughtful consideration to the rival submissions and from a careful perusal of the orders of the authorities below, we find that deduction under section 80P(2)(a)(iii) of the Act was denied by the Assessing Officer as well as the ld. CIT(A) solely for the reason that the assessee was not registered under the Co-operative Society's Registration Act. Besides, the assessee is also not engaged in the ....
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....ludes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely:-- (a) in the case of a co-operative society engaged in-- (i) carrying on the business of banking or providing credit facilities to its members, or (ii) a cottage industry, or (iii)....