TaxTMI 
TaxTMI 
2019 (5) TMI 704
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....rned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the appellant is not etitled to deduction u/s. 80P(2)(c) of the act on the ground that the activities of the appellant are not covered u/s. 80P(2)(a) and (b) of the Act. 03. The Ld. AR has submitted that ground no.1 is general and ground nos.2 and 3 are not pressed therefore we are not deciding ground nos.2 and 3. 3.1 Ground 4 pertains to 80P(2)(d). In this regard, the Ld. AR submitted that the assessee is a Housing Cooperative Society and filed return of income for AY 2009-10. Thereafter the AO had issued notice u/s.148 of the Act and in response thereto the assessee filed the return of income declaring nil income after claiming deduction u/s.80P2(d) of the Act. The AO considering the provision of section 80P2(d), had disallowed the deduction claimed by the assessee. Further the AO has allowed the deduction of Rs. 50,000/- u/s.80P(2)(c) of the Act. Aggrieved, assessee filed appeal before the CIT (A). 04. The CIT (A) after issuing the show-cause notice had also denied the deduction of Rs. 50,000/- given by the AO u/s.80P(2)(c). Aggrieved by the denial of deduction by the CIT (A), the assess....
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....lready been decided against the assessee, the legal position may kindly be noted and the matter may be decided in accordance with law. 06. Per contra the Ld. DR submitted that the assessee had conceded that the ground had been decided by the Hon'ble jurisdictional High Court (supra) therefore no further elaboration is required from the Revenue's side. 07. We have heard the rival submissions and perused the material on record. The issue pertains to eligibility of the assessee for claiming the deduction u/s.80P2(d), is squarely covered against the assessee by the categorical pronouncement in the matter of Pr. CIT versus Totgars Co-op Sale Society [395 ITR 611] , wherein after taking into account the judgment of the Hon'ble Supreme Court in the matter of Totgar's Cooperative Sale Society v. ITO [322 ITR 283] the issue was decided against the assessee. We do not find any reason to take a contrary view and accordingly the ground raised by the assessee is dismissed. 08. With respect of ground no.5, it was the contention of the assessee that the term 'profits and gains' used in section 80P(2)(c) is required to be read in the light of the judgment of the Hon'ble Supreme Court rend....
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....of the Judicial Commissioner, Nagpur, in Ballarpur Collieries v. CIT [1929] 4 ITC 255 (Nag), interpreting the said expression as covering all heads of income..... On the basis of the above, it was submitted that the profits and gains attributable to such activities include the activities of the assessee and the profit earned by the assessee from such activities. 09. Per contra, the Ld. DR relies on paras 4.8 & 4.9 of the order of the CIT (A). 10. We have heard the rival contentions and perused the material on record. Section 80P(2) is reproduced below : 80P(2) The sums referred to in sub-section (1) shall be the following, namely:-- (a) in the case of a co-operative society engaged in-- (i) carrying on the business of banking or providing credit facilities to its members, or (ii) a cottage industry, or (iii) the marketing of agricultural produce grown by its members, or (iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or (v) the processing, without the aid of power, of the agricultural produce of its membe....
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....tments with any other co-operative society, the whole of such income ; (e) in respect of any income derived by the co-operative society from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities, the whole of such income ; (f) in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities or any income from house property chargeable under section 22. Explanation For the purposes of this section, an "urban consumers co- operative society" means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment. The claim of the assessee is that the assessee falls within the category of 80P(2)(c) and therefore is entitled to deduction as mentioned in the said prov....
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....held that carried forward unabsorbed depreciation. unlike carried forward business loss. can be adjusted against income under other heads, though the section in the words ofthe Apex Court, "somewhat unfelicitously, used the expression 'profits and gains' as it occurs in the statute in the fasciculus of sections dealing with the computation of business income." So. it appears that in certain contexts. like the one before us in this appeal. 'profits and gains' may not be restricted to the net proceeds of the business operations, but may extend to net proceeds of other activities. At least, to my mind, this issue is debatable. 7. Further, the reliance placed by the Assessing Officer on the provisions of section80P(2)(f) is not of any assistance to the Revenue, because the assessee has not claimed relief under section 80P(2)(f) and the assessee has claimed the relief only under section 80P(2)(c). So, the question of invoking the provisions of section 80P(2)(f) does not arise. What has to be seen is whether the conditions specified in section 80P(2)(c) are satisfied or not. If the assessee is eligible for relief under section that would null....
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....n of Rs. 50,000 would be allowable if the activity carried on by if does not fall under clause (a) or clause (b) of sub-section (2) section 80P. Admittedly, the case of assessee does not fall within the provisions of clause (a) or clause (b) of sub-section (2) Of section 80P. Therefore, the provisions Of clause (c) become applicable to the present case and consequently the assessee is entitled to deduction of Rs. 50,000. Clause (f) relied on by the learned DR is applicable only with reference to income by way of interest on securities or income from house property chargeable under section 22. Since the assessee has not claimed any deduction in respect of such income, the provisions of clause (f) would not become applicable. In view of the above discussion, the Assessing Officer is directed to allow deduction of Rs. 50, 000 under section 80P. 3. Tamil Nadu Brick & Tile Mfrs. Industrial Service Co-operative Society Ltd. [2003] 129 TAXMAN 343 (MAD.) 19. With regard to the second question referred to in TC. No. 413 of 1999, the assessee claimed deduction in a sum Of Rs. 40,000 under section 80P(....