M/S JAI HIND SAINIK BAHUDESHIYA SAHKARI SAMITI LTD.,KOTA vs. INCOME TAX OFFICER, WARD-1-1, KOTA

PDF · subscribers
ITA 1522/JPR/2018Status: DisposedITAT Jaipur23 December 2021AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the AO had erroneously treated the assessee as an Association of Persons and had not properly considered the provisions of law. The matter was restored to the AO for fresh verification.

What were the facts?

The assessee, a cooperative society, claimed deduction under Section 80P(2)(a)(vi). The Assessing Officer (AO) treated the society as dormant and made an addition to the income. The CIT(A) upheld the AO's action.

What were the issues?

Whether the assessee is a dormant society and eligible for deduction under Section 80P(2)(a)(vi), and whether the AO correctly computed the income.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC” JAIPUR

Before: SHRI KUL BHARATvk;dj vihy la-@ITA. No. 1522/JP/2018

For Appellant: Ms. Pratibha Lalwani (CA) jktLo dh vksj ls@
Hearing: 23/12/2021Pronounced: 23/12/2021

ORDER PER: KUL BHARAT, J.M. This is an appeal filed by the assessee against the order of ld. CIT(A), Kota dated 18/10/2018 for the A.Y. 2015-16 wherein following grounds have been raised. “1. On the facts and in the circumstances of the case and in law, ld. CIT(A) has grossly erred in upholding the action of ld. A.O. in not allowing deduction u/s 80P(2)(a)(vi) of the Income Tax Act, 1961 arbitrarily. Appellant prays deduction has been rightly claimed by assessee and thus deserves to be allowed as claimed.

1.

2. On the facts and in the circumstances of the case and in law, ld. CIT(A) has grossly erred in confirming addition to the tune of Rs. 1,95,963/- out of addition made by ld. AO arbitrarily. Appellant prays that it is eligible for deduction u/s 80P(2)(a)(vi) and 2 M/s Jai Hind Sainik Bahudeshiya Sahmari Samiti Ltd. Vs ITO therefore, addition to the tune of Rs. 1,95,963/- deserves to be deleted.

3. That the appellant craves the right to add, delete, amend or abandon any of the grounds of appeal either before or at the time of hearing of appeal.”

2. At the outset, the ld. DR pointed out that the A.O. has given a finding that the society is dormant. Further the ld. DR has submitted that the paper book is not supplied to the department.

3.

The ld. Counsel for the assessee submitted that the finding of the authorities below is incorrect as the assessee is in active state. The ld. Counsel further submitted that the authorities below have misdirected themselves and did not consider the facts in right perspective.

4.

I have considered the rival contentions and perused the material available on record. The grievance of the assessee is that the A.O. erroneously treated the assessee as Association of Person despite the fact that the assessee is registered as a cooperative society. Further, it is stated that the A.O. has not considered the provisions of law and merely applied 8% as net profit for the purpose of computation of income of the assessee.

The reliance is made by the ld. Counsel for the assessee in the cases of Sai Baba Veddera Labour Contract Society Vs ITO in appeal No. 797/Hyd/2017 and Nasik District Labour Societies Vs ITO 18 ITD 354 Pune. The ld. DR submitted that the Revenue would have no objection if the matter is restored to the A.O. to decide afresh after verifying the records and examining the law. I, therefore, under the facts and circumstances of the present case, set aside the impugned order and restore the assessment to the file of the A.O. to verify the status of the assessee whether the assessee is a cooperative society duly registered with the 3 M/s Jai Hind Sainik Bahudeshiya Sahmari Samiti Ltd. Vs ITO Registrar of Societies and decide the question of availability of deduction U/s 80P(2)(a)(vi) of the Act in the light of the case laws as relied by the assessee.

5.

In the result, the appeal of the assessee is allowed for statistical purposes only. Order pronounced in the open Court on 23/12/2021.

Sd/- (Kul Bharat) U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 23/12/2021 *Ranjan आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- M/s Jai Hind Sainik Bahudeshiya Sahkari 1. Samiti Ltd., Kota. izR;FkhZ@ The Respondent- The I.T.O. Ward 1(1), Kota. 2. vk;dj vk;qDr@ CIT 3. vk;dj vk;qDr¼vihy½@The CIT(A) 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZ QkbZy@ Guard File (ITA No. 1522/JP/2018) 6. vkns'kkuqlkj@ By order, सहायक पंजीकार@Aेेज. त्महपेजतंत

More judgments on Section 80P(2)(a)(vi)

All 33 judgments and leading authorities on Section 80P(2)(a)(vi) →

Recent GST High Court judgments

Search GST case law →