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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: Shri Pramod Kumar]
By way of this appeal, the assessee appellant has challenged correctness of order dated 12th July 2016 passed by the CIT(A) in the matter of assessment under Section 143(3) of the Income-tax Act, 1961, for the assessment year 2013- 14.
Grievances raised by the appellant are as follows:-
“1. The Ld. CIT(A) has erred in confirming the addition of Interest Income of Rs.71,227/- being interest income from MGVCL considering the same as ineligible for deduction u/s. 80P(2) of the Act and consequently taxing the same u/s 56 of the Act. On the facts and circumstances of the case and in law, the Ld. CIT(A) was not justified in not allowing the deduction u/s 80P(2) of the act. The impugned addition confirmed by Ld. CIT(A) of Rs.71,227/- be deleted.
The Ld. CIT(A) has erred in considering to tax the Gross Commission income on Electric bill collection charges of Rs. 1,41,277/- (not Rs.131,709/-) without deducting the direct corresponding expenditure of electric bill collection of Rs.1,23,258/-. It is submitted that the net income only can be taxed i.e. Rs.18,019/-. Thus the addition made of Rs.1,41,277/- be restricted to Rs.18,019/-.”
SMC-ITA No. 2707/Ahd/2016 Shree Kotyark Credit Co.op Society Ltd Vs. ITO AY : 2013-14 Page 2 of 2
When this appeal was called out for hearing, learned counsel for the assessee submitted that all that he prays for is that income should be brought to tax on net basis, i.e. after deduction of expenses from the related receipts, and that entire receipts should not be brought to tax. Learned Departmental Representative does not seriously oppose the plea, but places her reliance on the authorities below.
I see merits, in principle, in plea of the assessee. What can be brought to tax is net income, and not the entire receipts. I, therefore, direct the Assessing Officer to allow netting in the terms indicated above.
In the result, the appeal is allowed for statistical purposes. Order pronounced in the open Court on this 15th day of October, 2018.
Sd/-
Pramod Kumar (Accountant Member) Ahmedabad, the 15th day of October, 2018 **bt Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order