SHASHI BHUSHAN MAJOOR SAHAKARI SANSTHA LTD,,JALNA vs. INCOME-TAX OFFICER, WARD - 1,, JALNA

ITA No.10/PUN/2019 2. Since the identical facts and common issues are involved in both the above captioned appeals, we proceed to dispose of the same by this common order.

For the sake of convenience and clarity, the facts relevant to the appeal in for the assessment year 2015-16 are stated herein. ITA No.10/PUN/2019, A.Y. 2015-16 : 4. Briefly, the facts of the case are that the appellant is a Co- operative Society registered under the Maharashtra Co-operative Societies Act, 1960. The appellant had filed the Return of Income for the assessment year 2015-16 on 26.09.2015 disclosing Rs.Nil income after claiming exemption u/s 80P(2)(a)(vi) of the Income Tax Act, 1961 (‘the Act’). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-1, Jalna (‘the Assessing Officer’) vide order dated 20.12.2017 passed u/s 143(3) of the Act at a total income of Rs.13,86,910/-. While doing so, the Assessing Officer rejected the claim for exemption u/s 80P(2)(a)(vi) by holding that the assessee is not engaged in collective disposal of the labour of its members, as contemplated u/s 80P(2)(a)(vi), but engaged in the business of execution of civil contracts. The Assessing Officer also pointed out the defects in the ITA No.10/PUN/2019 maintenance of books of account and proceeded to reject the books of account and estimated the profit @ 8% of the turnover of Rs.1,73,42,571/-.

Being aggrieved by the above assessment order, an appeal was filed before the ld. CIT(A), who vide impugned order confirmed the action of the Assessing Officer rejecting the contention of the appellant that the deduction u/s 80P(2)(a)(vi) was allowed by the Department for the earlier years by holding that each year is an independent and separate assessment year res judicata principle has no application placing reliance on the decision of the Hon’ble Supreme Court in the case of Karnani Properties Ltd. vs. CIT, 83 ITR 547 (SC) and the decision of the Hon,ble Punjab & Haryana High Court in the case of Bandi Co-operative Labour & Construction Society vs. CIT, 300 ITR 107 (P&H).

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

When the appeal was called on, none appeared on behalf of the assessee despite due service of notices of hearing. Therefore, we proceed to dispose of the matter on merits considering the material on record and after hearing the ld. Sr. DR.