SRP Group Sahakari Mandali Ltd.,, Ahmedabad v. The Assistant Commissioner of Income Tax ,Cir -7(2),, Ahmedabad

ITA 2527/AHD/2016 | 2013-2014
Pronouncement Date: 28-11-2017 | Result: Allowed

Appeal Details

RSA Number 252720514 RSA 2016
Assessee PAN AABAS6542H
Bench Ahmedabad
Appeal Number ITA 2527/AHD/2016
Duration Of Justice 1 year(s) 1 month(s) 22 day(s)
Appellant SRP Group Sahakari Mandali Ltd.,, Ahmedabad
Respondent The Assistant Commissioner of Income Tax ,Cir -7(2),, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 28-11-2017
Assessment Year 2013-2014
Appeal Filed On 06-10-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I RAJPAL YADAV JUDICIAL MEMBER AND SHRI AMARJIT SINGH ACCOUNTANT MEMBER SRP GROUP SAHAKARI MANDALI LTD. NARODA AHMEDABAD - 382346 PAN: AABAS6542H (APPELLANT) VS THE ACIT CIRCLE - 7(2) AHMEDABAD (RESPONDENT) REVENUE BY : S H RI PRASOON KABRA SR. D . R. ASSESSEE B Y: S H RI PRITESH SHAH A.R. DATE OF HEARING : 27 - 11 - 2 017 DATE OF PRONOUNCEMENT : 28 - 11 - 2 017 / ORDER P ER : AMARJIT SINGH ACCOUNTANT MEMBER : - THE PRESENT THREE APPEALS ARE DIRECTED AT THE INSTANCE OF ASSESSEE AGAINST THE ORDER OF LD. CIT(A) DATED 05 - 08 - 2016 FOR ASSESSMENT YEAR S 2009 - 10 2010 - 11 & 2012 - 13. 2. THE SOLITARY GRIEVANCE IS THAT LD. CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF EXEMPTION CLAIM U/S. 80P OF THE INCOME TAX ACT. WITH THE ASSISTANCE OF LD. REPRESENTATIVES WE HAVE GONE THROUGH THE I T A NO S . 2525 TO 2527 / A HD/20 16 A Y 200 9 - 10 2010 - 11 & 2013 - 14 I.T.A NO S . 2525 TO 2527 /AHD/20 16 A.Y. 2009 - 10 2010 - 11 & 2013 - 14 PAGE NO SRP GROUP SAHAKARI MANDALI LTD. VS. ACIT 2 RECORDS CAREFULLY. THE FACTS OF ALL THESE APPEAL S ARE COMMON IN ALL THESE THREE ASSESSMENT YEARS THEREFORE FOR THE FACILITY OF REFERENCE WE ARE TAKING THE FACT OF AS SESSMENT YEAR 2009 - 10 AS A LEAD CASE AND ITS FINDINGS WILL BE APPLICABLE TO THE OTHER TWO APPEAL S OF ASSESSMENT YEARS 2010 - 11 AND 2013 - 14 . IT IS PERTINENT TO OBSERVE THAT ASSESSEE IS A CREDIT CO - OPERATIVE SOCIETY. IT HAS CLAIMED DEDUCTION U/S. 80P ON FOLLOWING ITEMS: - SR. NO. BUSINESS ACTIVITIES NET PROFIT IN RS. 1 NET INTERNET INCOME (BALANCE OF RETURNED INCOME LESS NET INCOME EARNED FROM OTHER BUSINESS ACTI V ATING MENTIONED BELOW FROM SL. NO. 2 TO 10 15 58 680/ - 2 RENTAL INCOME 103904 3 TORRENT B ILL COLLECTION COMMISSION 36064 4 MINERAL WATER SALE 36918 5 GAS DISTRIBUTION 429096 6 POULTRY SALE 118140 7 BAKERY 55632 8 MILK/ICE CREAM 46946 9 STD PCO 60964 10 PROVISION/GRAIN STORE 2959 TOTAL 24 49 303/ - ON ANALYSIS OF THE RECORDS LD. ASSE SSING OFFICER FOUND THAT ASSESSEE IS A CREDIT CO - OPERATIVE SOCIETY AND NOT A LABOUR SOCIETY THEREFORE IT IS NOT ENTITLED FOR DEDUCTION QUA THE INTEREST INCOME GENERATED ON FOLLOWING ACTIVITIES : - SR. NO. BUSINESS ACTIVITIES NET PROFIT IN RS. 1 RENTAL IN COME 103904 2 TORRENT BILL COLLECTION COMMISSION 36064 3 MINERAL WATER SALE 36918 4 GAS DISTRIBUTION 429096 5 POULTRY SALE 118140 6 BAKERY 55632 7 MILK/ICE CREAM 46946 8 STD PCO 60964 I.T.A NO S . 2525 TO 2527 /AHD/20 16 A.Y. 2009 - 10 2010 - 11 & 2013 - 14 PAGE NO SRP GROUP SAHAKARI MANDALI LTD. VS. ACIT 3 9 PROVISION / GRAIN STORE 2959 TOTAL 890 623 AFTER EXAMININ G THE RECORD LD. ASSESSING OFFICER HAS DISALLOWED THE DEDUCTION U/S. 80 P ON ITEMS EXCEP T INTEREST INCOME EARNED BY ASSESSEE. IN THIS WAY IN ASSESSMENT YEAR 2009 - 10 THE ASSESSING OFFICER HAS MADE S IMILAR DISALLOWANCE IN ASSESSMENT YEAR S 2010 - 11 AND IN THE ASSESSMENT YEAR 2013 - 14 RESPECTIVELY. 3. APPEAL TO LD. CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEEE 4. AT THE VERY OUTSET LD. COUNSEL FOR THE ASSESEE SUBMITTED THAT ASSESSING OFFICER HAS ERRED IN COMPUTING THE AMOUNTS FOR MAKING DISALLOWANC E U/S. 80 P ON GROSS BASIS. THE ACTIVITY WHICH DOES NOT QUALIFY FO R GRANT OF EXEMPTION U/S. 80 P(2) WHICH HAVE ONLY NET INCOME RELATABLE TO THOSE ACTIVITIES OUGHT TO BE COMPUTED FOR DISALLOWANCE OF EXEMPTION. WE FIND FORCE I N THIS CONTENTIO N OF L EA RNED COU NSEL FOR THE ASSESSEE T HEREFORE WE REMIT THIS ISSUE TO THE FILE OF LD. ASSESSING OFFICER FOR ALL THREE YEARS. LD. ASSESSING OFFICER SHALL DETERMINE THE NET INCOME ATTRIBUTABLE TO EACH ACTIVITY AND THEREAFTER EXCLUDE THOSE AMOUNTS FROM THE CLAIM MADE U/S . 80 P(2) . 5. IN THE RESULT ALL THE APPEAL S OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OURT ON 28 - 11 - 201 7 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER I.T.A NO S . 2525 TO 2527 /AHD/20 16 A.Y. 2009 - 10 2010 - 11 & 2013 - 14 PAGE NO SRP GROUP SAHAKARI MANDALI LTD. VS. ACIT 4 AHMEDABAD : DATED 28 /11 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER/ /