AI Drafter 
TaxTMI 
TaxTMI 
2023 (1) TMI 1159
X X X X Extracts X X X X
X X X X Extracts X X X X
....allowance of exemption claimed u/s. 80P of the IT Act, 1961. 2. The Ld. CIT(A) has erred in law as well as on facts in not considering all the grounds of disallowance of deduction made by the A.O. 3. The order of Ld. CIT(A) be set aside and the order of the A.O. be restorted. 4. Appellant craves leave to modify/amend or add any one or more grounds of appeal." 3. When the case was called for hearing neither the assessee nor authorise representative appeared nor any adjournment application has been filed. The Ld. Senior D.R. placed on record report regarding Dasti Services of notice and submitted that the service has been made on the assessee, through its permanent clerk named Shri Dinesh Kumar, copy of acknowled....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gibility of specific deduction against the specific activity claim in the return of income u/s. 80P (2) of the Income Tax Act, 1961. The Ld. Senior D.R. submitted that the Ld. CIT(A) has granted relief to the assessee without any reasonable basis. Therefore impugned first appellate order may kindly be set aside by restoring that of the A.O. From the careful reading of first appellate order, we observe that the authorise representative of the assessee submitted detail written submissions before the Ld. CIT(A), which has been reproduced in the first appellate order para 4 which are being reproduced for the sake of completeness. 5. From the relevant operative part of the first appellate order, we observe that the Ld. CIT(A) granted the reli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....i) Anudan Keetnashak - 400000.00 & (iii) Anudan krishi yantra - 440000.00 The appellant has claimed that these are grants received from the state government and the same has been passed to the members of the appellant society. This is a fact that it has not been examined by the AO during the assessment proceedings. Therefore, the AO is being directed to ascertain if these grants have indeed been passed to the members of the society. If so no profit would arise from such grants. To the extent these grants have been distributed to the members they should be allowed to be deducted. The AO is being directed accordingly. (iv) Commission Income - 20133750.00, (vi) Entry Fee - 621902.00, (viii) Other Income - 80725.00, (ix) Patte (Satte) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ental to the business of providing credit facilities to the members. The same would be eligible for deduction w/s80P (2) (a) (ill). The AO is being directed to allow deduction accordingly. 6. From the careful reading of assessment as well as first appellate order and submissions of the assessee before the authorities below including submissions noted by the Ld. CIT(A) (supra). First of all we observe that the Ld. CIT(A) has partly dismissed the appeal of assessee on the issue of interest income of Rs. 12,72,087.93/- and there is no cross appeal or cross objection by the assessee in this regard. 7. The learned first appellate authority on the issue of gross profit noted that the appellate purchase sugarcane seeds, agricultural equipmen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ul perusal of the first appellate order we observe that the Assessing Officer merely alleged that if the assessee takes sale/purchase of agricultural produce by its members then it must be shown in trading account, while no such transactions has been shown in the trading account maintained by the assessee. The AO alleged that the account maintain by the assessee are defective and not audited u/s. 44AB of the Act. The Ld. CIT(A) after considering the explanation and submissions of the assessee that wherein it was submitted that from the details mentioned it is clear that the activity of supply of sugarcane to the sugar mill constitute a marketing activity of sugarcane which is agricultural produce grown by the appellants members and as the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....right in directing the AO to verify the amounts of grants Anudhan Keetnashak and Anudan Krishi Yantra received from State Government to ascertain if these grants have been indeed to passed to the members of the society and the amount so passed was allowed to be deducted. We are also in the agreement with the conclusion drawn by the Ld. CIT(A) that the claim of assessee regarding commission income, entry fee, other income, patte (satte) se income, Upaj Badhotri and Vasooli Kharcha are incidental receipts relating to the business of marketing of agricultural produce of the members therefore the receipt from said heads is eligible for deduction u/s. 80P(2)(a)(iii) of the Act. It is pertinent to note that the assessee has claimed u/s. 80P(2) of....