T V MALAI DISTRICT CIONSUMERS CO-OPERATIVE WHOLESALE STORES LIMTED,TIRUVANNAMALAI vs. DCIT CIRCLE 1, VELLORE

At the outset, we note that the assessment was completed under section 144 of the Act by determining the income of the assessee at ₹.1,90,43,852/- after allowing the deduction under section 80P(2)(d) and under section 80P(2)(c) of the Act of ₹.29,38,965/- against the claim of deduction under section 80P of the Act of ₹.2,19,82,817/-.

On perusal of the appellate order, we note that before the ld. CIT(A), the assessee made a fresh claim of deduction under section 80P(2)(e) of the Act. The ld. CIT(A) sought for remand report from the Assessing Officer against the fresh claim of the assessee. After considering the remand report as well as reply of the assessee against the remand report, the ld. CIT(A) rejected the claim of the assessee towards deduction claimed under section 80P(2)(e) of the Act on the ground that the assessee did not produce any evidence of having godown/warehouse to let out and has not furnished any contract/ agreement with the State Government to prove the claim.

The ld. AR, Shri S. Sridhar, Advocate submits that admittedly, the assessee is a cooperative society engaged in the activity of wholesale supplies to PDS outlets in Tiruvannamalai District and also runs PDS outlets, provision stores, and medical stores. By referring to the notification in English translation issued by the Additional