2016 (6) TMI 86

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....in its appeal, however, the cruxes of the issues are as follows: (i) The ld. Principal CIT has erred in invoking the provisions of section 263 of the Act by holding that the deduction U/s. 80P was wrongly allowed amounting to Rs. 23,08,376/-. (ii) The ld. Principal CIT has erred in disallowing the provision for maintenance expenditure amounting to Rs. 6 lakhs claimed by the assessee. The second ground raised by the assessee with respect to maintenance expenditure of Rs. 6 lakhs is not pressed by the ld. A.R and therefore, dismissed as such. Thus, the lone ground that remains to be adjudicated is with respect to ground No. (i) i.e., invoking powers u/s. 263 by the ld. Principal CIT against claiming deduction u/s. 80P of ....

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....d as follows in his order:- "2.6 It is seen that the A.R has not given any specific submissions justifying the claim of deduction u/s 80P(2)(a)(v) when the provisions are clear that the deduction is not available when the society uses power for the processing of the agricultural produce. The A.R has not refuted the fact that the assessee-society is using power for the processing of green tea into black tea. In view of the fact that the assessee-society is using power for processing the tea, the exemption is not available for the assessee u/s 80P(2)(v) also. 2.7 With regard to the question of whether manufacturing of tea falls within processing of agricultural produce, coming under the purview of S.80P(2)(iii) or S.80P(2)(v....

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..../13-14 dated 12.11.2014 in view of the case laws memntioned above. Again, the Department has contested th order of the Hon'ble ITAT in the case of M/s SL(SPL), 151, Karkudalpatty Primary Agricultural Cooeprative Credit Society Ltd vs ITO before the Hon'ble High Court, Chennai, which is still pending. As such, in order to keep the issue alive and in line with the stand taken by the Department, the submissions of A.R are not accepted. Further, as the entire claim of deduction u/s 80P is not in order, the issue of procurement and sale of tea from the class B members does not arise. 10. In view of the above discussions, the claim of deduction u/s 80P is not correct and the order of the Assessing Officer in allowing the deductio....