Dharampur Samabay Krishi Unnayan Samity Ltd., North 24 Parganas v. I.T.O Wd - 49(1),kolkata., Kolkata

ITA 109/KOL/2013 | 2008-2009
Pronouncement Date: 29-04-2015

Appeal Details

RSA Number 10923514 RSA 2013
Assessee PAN AAAJD0218K
Bench Kolkata
Appeal Number ITA 109/KOL/2013
Duration Of Justice 2 year(s) 3 month(s) 11 day(s)
Appellant Dharampur Samabay Krishi Unnayan Samity Ltd., North 24 Parganas
Respondent I.T.O Wd - 49(1),kolkata., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 29-04-2015
Assessment Year 2008-2009
Appeal Filed On 17-01-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA B EFORE H ON BLE SHRI P.K B ANSAL AM & H ON BLE SHRI RAJPAL YADAV JM I.T.A NO. 109 /KOL/201 3 A.Y 20 08 - 09 M/S. DHARAMPUR SAMABAY KRISHI VS. INCOME - TAX OFFICER WARD 49(1) UNNAYAN SAMITY LTD. KOLKATA PAN: AAAJD 0218K [ APPELLANT ] [ R ESPONDENT ] APPELLANT BY : SHRI S.K. AGARWAL ACCOUNTANT LD.AR RESPONDENT BY : SHRI ANJAN PRASAD ROY JCIT/LD.SR.DR DATE OF HEARING : 2 9 /04/2015 DATE OF PRONOUNCEMENT: 2 9 /04/2015 ORDER PER RAJPAL YADAV JM TH E ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORDER OF LD. CIT(A) DATED 31 - 10 - 2012 PASSED FOR ASSESSMENT YEAR 20 08 - 09 . 2. THE ASSESSEE HAS TAKEN SIX GROUNDS OF APPEAL BUT ITS GRIEVANCE REVOLVES AROUND A SINGLE ISSUE NAMELY WHETHE R THE ASSESSEE IS ENTITLED FOR EXEMPTION U/S. 80P OF THE I.T ACT 1961 ON THE NET PROFIT OF RS.9 50 000/ - ? 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED ITS RETURN ON 29 - 09 - 2008 DECLARING NIL INCOME. ITS CASE WAS SELECTED FOR SCRUTINY ASSESSMENT. NOTICE U/S. 14 3 ( 2 ) WAS ISSUED AND SERVED UPON THE ASSESSEE. 4. ON SCRUTINY OF ACCOUNTS IT REVEALED TO THE AO THAT ASSESSEE HAS BIFURCATED ITS INCOME AND EXPE NDITURE INTO FOLLOWING THREE CATEGORIES NAMELY; A) GENERAL SECTION (BANKING) B) INPUT SECTION - FERTILIZER PESTICIDES ETC AND RICE MILL AND C) C ONSUMERS SECTION - CONSUMABLE GOODS FOR ITS MEMBERS ITA NO . 109 /KOL/2013 - JM M/S. DHARAMPUR SAMABAY KRISHI UNNAYAN SAMITY LTD. 2 5. THE ASSESSEE HAS SHOWN NET PROFIT TO THE TUNE OF RS. 9 50 000/ - THROUGH THESE ACTIVITIES. IT CLAIMED EXEMPTION U/S. 80P OF THE I.T ACT 1961. THE LD.AO HAS DIRECTED THE ASSESSEE TO BIFURCATE ITS NPUT SECTION INTO TWO CATEGORIES NAMELY A) FERTILIZER AND B) RICE MILL. HE EXAMINED THE DETAILS AND OBSERVED T HAT THE ASSESSEE HAS PROVIDE D CERTAIN SERVICES WHICH RESULTED INCOME TO IT. THE LD.AO HAS NARRATED THE NATURE OF SERVICES AT PAGE 3 OF THE ASSESSMENT ORDER AND RECORDED HIS FINDING THAT THESE ACTIVITIES ARE NOT THE ACTIVITIES REQUIRED TO BE UNDERTAKE N IN THE CO - OPERATIVE SOCIETY. THE LD. AO HAS CARVED OUT 10 SERVICES SOME OF THEM ARE (A) ON SALE OF FERTILIZER ASSESSEE CHARGED EXTRA CARRIAGE; (B) SALE OF DAMAGED CONTAINER AND ( C) COMMISSION RECEIVED FROM INSURANCE COMPANY. ACCORDINGLY HE DISALLOWED A SUM OF RS.17 40 993/ - WHICH RELATES TO THESE ACTIVITIES . THE LD. AO FURTHER OBSERVED THAT THE ASSESSEE IS NOT ENTITLE D FOR EXEMPTION U/S. 80P ON THIS AMOUNT. 6 . ON A P P EAL TO THE LD.CIT(A) THE LD. 1 ST APPELLATE AUTHORITY HAS CONFIRMED THE ASSESSMENT ORDER WITHOUT GOING INTO THESE ISSUES. IN OTHER WORDS THE APPEAL OF THE ASSESSEE HAS BEEN DISMISSED IN LIMINE. 7 . WITH THE ASSISTANCE OF THE LD. REPRESENTATIVE WE HAVE GONE THROUGH THE RECORD CAREFULLY . SUB SECTION 6 OF SECTION 250 MANDATES THE LD. CIT(A) TO STATE THE POINTS IN DISPUTES AND THEN ASSIGNED THE REASONS IN SUPPORT OF HIS CONCLUSION ON THOSE POINTS . THE LD. 1 ST APPELLATE AUTHORITY HAS FAILED TO STATE THE POINTS IN DISPUTES THEREAFTER FAILED TO APPRECIATE THE FACTS AND CIRCUMSTANCES AVAILABLE ON RECORD. THEREFORE THE ORDER OF THE LD.CIT(A) IS NOT SUSTAINABLE. NORMALLY WHENEVER WE FIND TH AT THE ILLEGALITY OR IRREGULARITY HAS CREPT IN ANY PROCEEDING W E SET ASIDE THE ILLEGALITY AND IRREGULARITY AND R ESTORE THE PROCEEDING AT THAT LEVEL FOR THE ADJUDICATION. IN THE PRESENT APPEAL THE PROCEEDING DESERVES TO BE RESTORED TO THE FILE OF THE LD. CIT(A) BUT LOOKING TO THE ASSESSMENT ORDER WHERE THE AO HAS NOT APPRECIATED THE FACTS AND CIRCUMSTANCES IN RIGH T PERSPECTIVE. HE DISALLOWED THE EXPENDITURE. FOR EXAMPLE IF ASSESSEE HAD RECEIVED INSURANCE COMMISSION TH A N IT HAS ONLY REDUCED THE COST OF PREMIUM. IT IS LINKED WITH MAIN ACTIVITY. HE HAS FAILED TO COMPREHEND THAT THE SUB ACTIVITIES ARE NOT INDEPENDENT IN THEMSELVES. THE CO - OPERATIVE SOCIETY IS ONE UNIT AND HAS CARRIED OUT ACTIVITIES FOR ITS ITA NO . 109 /KOL/2013 - JM M/S. DHARAMPUR SAMABAY KRISHI UNNAYAN SAMITY LTD. 3 MEMBERS. THE SUB ACTIVITIES C A RVED BY THE AO ARE NOT INDEPENDENT THEMSELVES. THEREFORE WE DEEM IT APPROPRIATE TO SET ASIDE BOTH THE ORDERS AND RESTORE THE ISSUES TO THE FILE OF THE AO FOR FRESH ADJUDICATION. IT IS NEEDLESS TO SAY THAT THE OBSERVATION MADE BY US WILL NOT I MPIRE OR INJURE THE CASE OF THE AO AND WILL NOT CAUSE ANY PREJUDICE TO THE DEFENCE/EXPLANATION OF THE ASSESSEE. THE LD.AO SHALL ADJUDICATE THE ISSUE AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. 8 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONO UNCED IN THE OPEN COURT ON 2 9 - 04 - 2015 SD/ - SD/ - [ P.K BANSAL] [ RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 9 - 04 - 2015 COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT - M/S. DHARAMPUR SAMABAY KRISHI UNNAYAN SAMITY LTD . DHARAMPUR GAIGHATA 24 PGS (N) 743 249 2 RESPONDENT : I.T.O W 49(1) 169 AJC BOSE RD. KOL - 14 3 . CIT 4 . CIT(A) 5 . D R KOLKATA BENCHES KOLKATA *PP/SPS TRUE COPY] BY ORDER ASSTT REGISTRAR