TaxTMI 
TaxTMI 
2023 (1) TMI 1159
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....t, 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 acknowledgment has also been placed on record. Therefore it is safely presumed that ....
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....urn 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 relief to the assessee with following observations and findings: The AO has broug....
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....d 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) se Income - 15000.00, (x) Upaj Badhotri - 73526.00 and (xi) Vasooli Kharcha - 10084.03 All these receipts apparently pertain to the appellant's main business of marketing agricultural....
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....f 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 equipments etc. and supplied them to its members as per objects of the society and profit from such activity was claimed to be exempt u/s. 80P(2)(a)(iv) of the Income Tact Act 1961. The Ld. CIT(A) was right in observing that there ....
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....uch 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 appellant is cooperative society duly registered under Cooperative Society Act 1912 all the essential require for claiming deduction u/s. 80P(2)(iii) are fulfilled and thus the assessee is eligible for deduction. The assessee ....
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....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 the Act, only on the net profit amount and not gross commission and other incomes therefore the AO was not right in denying the claim of assessee on the basis of quantum of sale of sugar cane and commission. Such kind of alleg....