TaxTMI 
TaxTMI 
TaxTMI 
2017 (5) TMI 408
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.... deduction as claimed deserves to be allowed. 3. The learned CIT (A) on facts and in law and on the grounds taken and basis adopted went wrong to uphold the disallowance of the claimed exemptions. The adverse and erroneous findings deserve to be quashed being illegal and untenable on facts and in law and the claim of exemptions deserve to be allowed. 4.(a). That the loss of Rs. 7,27,254/- arising in Consumer's Store Division having been substantiated by the method of accounting regularly employed as all the items on the debit and credit side of the account were fully verifiable. There being no error of omission^ or commission in the method of accounting as all the purchases, expenses and turnover having been fully substantiated, there was no legal warrant in rejecting the declared version thereby disallowing the declared loss which deserves to be allowed. (b). That the Authorities below on facts and in law and the grounds taken and basis adopted went wrong to disallow the declared loss of Rs. 7,27,254/- in the Consumer's Store Division which deserves to be allowed. 5.(a). That the loss of Rs. 8,08,374/'- arising in Printing Press Division having been substantiated by th....
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....ision. From the perusal of trading account of the assessee, it was noticed that it consists of other income shown at Rs. 32,563/-, income from transportation at Rs. 21,51,666/- and income from storage at Rs. 5,59,596/- and net profit was shown at Rs. 23,27,770/-. Therefore, the A.O took the view that the question to consider exemption u/s 80P(2)(a)(i) did not arise as all the remaining income shown in the trading account are not covered u/s 80P and therefore, net income of Rs. 6,16,467/- is not exempt u/s 80P. 4. The assessee further claimed the income from transportation and letting of godown as exempted u/s 80P. It was noticed by the A.O that the income of head office expenses under the head of sale purchase of fertilizer and transportation showing at Rs. 23,27,770/- is divided proportionately between two of its main activities i.e. Purchase of fertilizer and supply to its members and letting of godown and transportation income. The A.O did not accept the explanation of the assessee in this regard in view of the reason discussed in the notice dated 18/7/2008 and also in view of the assessment order for the Assessment Year 2001-02, the facts of which are similar to the year under....
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....ility in his name. The other employees name was also given by Shri Surender Kumar i.e. Shri Om Veer in whose name sales was shown Rs. 7,51,492/- the accounts maintained by the assessee as well as the sale vouchers issued in the name of these two employees shows that they were purchasing goods for selling the same in the market on behalf of the assessee. In other words, they are doing trading of goods by making purchases from the assessee and selling the same in the market. But this does not amount to making sale to its employees by the assessee. In fact the employees are making sales on behalf of the assessee. This is a cooperative society which is very transparent and there is no manipulation of profit. 7. The Ld. DR submitted that the Assessing Officer as well as the CIT (A) has arrived at correct finding and there is no need to interfere with the same. 8. We have perused all the records. It is pertinent to note that there is a loss in respect of this particular assessment year. The stock register entry has also given the details wherein the figures are in the minus. There was no comment by the assessing officer as well as by the CIT (A) as to these figures are contrary to the ....
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....etected in the method of accounting and also all the items recorded on the debit and credit side of the account were not found and held to be non-genuine. (b). The learned CIT (A) on facts and in law and the grounds taken and the basis adopted went wrong to uphold the disallowance of loss of Rs. 2,90,7GBP9/- in the Consumer Store Division. The erroneous findings recorded by the Ld. CIT (A) deserve to be quashed and the loss, as claimed, deserves to be allowed. 2. That on facts and in law, the interest u/s 234B, 234C and 234Dwas not chargeable. Levy of interest under the provisions deserves to be quashed, illegal, without jurisdiction and untenable on facts and in law. 11. As relates to ITA No. 3309/Del/2011, the issues are identical with the Assessment Year 2006-07 which has been dealt hereinabove being ITA No. 3308/DEL/2011. 12. In result, Appeal No, being ITA No. 3309/Del/2011 is partly allowed for statistical purpose. 13. The grounds of appeal are as under: - ITA No. 6613/Del/2013. 1) That the order passed by the A.O. and CIT (Appeal) M. Nagar is wrong and against the facts of the case. 2) That the appellant has neither concealed any income nor has filed inaccurate p....