2019 (2) TMI 1269

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....rred in not granting the deduction u/s 80P of the Income Tax Act, 1961 for sum of Rs. 10,44,088/- by disregarding appellant's contention. 3. The only issue raised in the present appeal is against the claim of deduction under section 80P of the Act. 4. Briefly, in the facts of the case, the assessee was Co-operative Society and had furnished the return of income declaring Nil income after claiming the deduction under section 80P of the Act. The assessee society was formed for purchase and sale of fertilizers, seeds and pesticides. The said items were then supplied to farmers. The assessee claimed that it had cold storage facility but during the year, the same was closed. The Assessing Officer on verification of Profit and Loss Account note....

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....ra 12 held as under:- "12. Thus, it is evident that the deduction u/s. 80P(2)(e) is available to an assessee in respect of income derived from the letting of godowns or warehouses, only where the purpose of letting is storage, processing or facilitating the marketing of commodities. It is intrinsic in the provisions of Section 80P(2)(e) itself that income should be derived from the activity of letting out or the use of its godowns or warehouses. Any income derived by a society unconnected with such letting out or use of the godowns or warehouses will not fall under clause (e). Adverting to the facts of the case, it is seen that the assessee has derived income from procuring of pulses and soya bean for which it has been paid commission and....

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....e have heard the rival contentions and perused the record. The issue which arises in the present appeal is the claim of deduction under section 80P(2)(e) of the Act on hamali and commission income earned by the assessee. In order to adjudicate the aforesaid issue, first reference is made to section 80P(2)(e) of the Act, wherein it is clearly provided that where the income is derived by Co-operative Society from letting of godowns and warehouses for storage / processing or facilitating the marketing of commodities, then whole of such income is exempt under section 80P(2)(e) of the Act. The interpretation of the CIT(A) in this regard was that the words used in the said sub clause are for income derived from letting of godowns or warehouses fo....