2018 (12) TMI 906

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.... None ORDER PER AMARJIT SINGH, ACCOUNTANT MEMBER: This revenue's appeal for A.Y. 2009-10, arises from order of the ld.CIT(A)-VI, Baroda, dated 02/09/2013, in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". 2. Both the grounds of revenue are interconnected to the solitary issue of disallowance of Rs. 5,92,19,981/- u/s.40A(2)(b) of the Act. 3. The bri....

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.... was disallowable as per the provisions of section 40A(2)(b) of the Act. Thereafter, the Assessing Officer has issued a show cause notice to the assessee to explain why not excess price of sugarcane given to the farmers should not be disallowed as per the provision of section 40A(2)(b) of the Act. In this regard the assessee responded that the section 40A(2)(b) is not applicable to the co-operativ....

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....)(b) of the Act. Accordingly, the Assessing Officer has made addition of Rs. 5,92,19,981/- u/s.40A(2)(b) of the Act. 5. Aggrieved assessee has filed an appeal before the ld.CIT(A. The ld.CIT(A) has allowed the appeal of the assessee by placing reliance on the decision of ITAT, Pune Bench in the case of Shivamrut Dudh Utpadak Sah. Sangh Maryadit Vs DCIT, (1999) 63 TTJ (Pune) 405 and also decisio....

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.... motivated by entrepreneurial profits by distinguishes from the association of business''. The Co-ordinate Bench of ITAT has held that the provisions of section 40A(2)(b) of the Act, does not apply to co-operative society. Hence, no disallowance under that section can be made in the assessment of co-operative society. The Hon'ble Bombay High Court also in the case of CIT vs Manjara Shetkari Sahaka....