TaxTMI 
TaxTMI 
2019 (1) TMI 205
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.... only issue involved in this appeal is as to whether the ld. CIT was justified in invoking revisionary jurisdiction u/s 263 of the Act, in the facts and circumstances of the case. 3. At the outset ground no. 2 raised by the assessee was stated to be not pressed, for which necessary endorsement is made in our file. Accordingly ground no. 2 raised by the assessee is dismissed as not pressed. 4. Brief facts of this appeal against the order passed u/s 263 of the Act are that the assessee filed its return of income for assessment year 2012-13 on 30.09.2012 declaring total income of Rs. Nil since the assessee being a co-operative society, its income was eligible for deduction u/s 80P of the Act. The assessment was completed u/s 143(3) of the Ac....
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....of the Act stating that it is a cooperative society engaged in the business of marketing of agricultural produce grown by its members, purchase of agricultural implements, seeds, live stock or other articles intended for agriculture for the purpose of supplying them to its members. The assessee stated that it is under West Bengal Co-operative Societies Act and / or governed by the Rules framed thereon. The income derived by the assessee is eligible for deduction u/s 80P of the Act. The provision of section 80P(2)(a)(iii) and (iv) states that the income of the co-operative society for acquiring for purchasing of agricultural implements, seeds, live stock or other articles intended for agriculture for the purpose of supplying them to its memb....
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....ed the ld. AO to verify the genuineness of the claim of deduction in respect of these two items and set aside the assessment to this limited extent to the file of ld. AO. Aggrieved, the assessee is in appeal before us. 6. We have heard the rival submissions. At the outset, we find that even if the provision for bad and doubtful debts and provision for gratuity fund are to be disallowed in computing the total income of the assessee, the same would only go to increase the income of the co-operative society, which in turn, automatically lead to enhanced deduction of section 80P of the Act. There is no dispute that the assessee society is indeed eligible for deduction u/s 80P of the Act. In this regard, we would like to place reliance on the c....
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....ssessee for the purpose of developing a housing project was not allowable on account of non-deduction of TDS under law, such disallowance would ultimately increase assessee's profits from business of developing housing project. The ultimate profits of assessee after adjusting disallowance under section 40(a)(ia) of the Act would qualify for deduction under section 80-IB of the Act. This view was taken by the courts in the following cases: Income-tax Officer -Ward 5(1) v. Keval Construction [2013] 33 taxmann.com 277 (Guj.) Commissioner of Income-tax-IV, Nagpur v. Sunil Vishwambharnath Tiwari [2016] 63 taxmann.com 241 (Bom.) (ii) If deduction under section 40A(3) of the Act is not allowed, the same would have to be added to the profits....