2003 (4) TMI 74

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....order of appeal and thereby holding that the income of the assessee is exempt under section 80P of the Act? (ii) Whether, on the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in law in deleting the disallowance of Rs. 7,74,883 made out of the secretary pay fund?" The assessee is a co-operative society deriving income from commission, interest, dividend, etc. For the assessment year 1992-93, it filed a return on December 23, 1992, declaring a loss of Rs. 32,60,260. The same was processed under section 143(1)(a) of the Act at a loss of Rs. 32,42,910 after deducting income-tax at Rs. 17,350. Subsequently, the case was taken up for scrutiny and vide order dated December 28, 1993 pas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... known at the end of the co-operative year because the secretary pay fund from societies was charged at the end of the year." The assessee challenged the order passed by the Assessing Officer on various grounds including the one that its income was exempt under section 80P of the Act and that deletion of disallowance of Rs. 7,74,830 made by the Assessing Officer was legally unsustainable. The Assessing Officer opposed the assessee's plea for exemption under section 80P by contending that such a plea had not been raised before him. He further pleaded that the method of accounting adopted by the assessee was rightly not accepted for making disallowance of Rs. 7,74,830. On a consideration of the rival contentions, the Commissioner of Inc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re of the view that on the facts and in the circumstances of the case and in view of the detailed explanation submitted by the assessee before him as mentioned in paras. (ii) and (iii) at pages 5 and 6 of the impugned appellate order, the learned Commissioner of Income-tax (Appeals) was justified in deleting the addition of Rs. 7,74,830. The Assessing Officer had disallowed the claim as he was not satisfied with the assessee's reply regarding the increase in the amount of the claim as compared to the claim of the earlier year. The assessee satisfactorily explained the reasons before the learned Commissioner of Income-tax (Appeals) as mentioned above. We are of the view that the reasons given by the assessee for the increase in the claim wer....