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2022 (6) TMI 562 - ITAT VARANASIDeduction u/s 80P(2)(a)(iii) with respect to gross commission receipts - Denial of deduction assessee is not engaged in marketing of agricultural produce grown by its members, and is merely a facilitator / agent for ensuring timely payments to the farmers for the purchase of sugar cane by sugar mills for which it is entitled to receive commission at a specified rate on every purchase made by the sugar mills - CIT(A) allowed the appeal filed by the assessee and held that the assessee is into marketing of sugar cane grown by farmers who are its member, and the assessee is entitled for deduction u/s 80P(2)(a)(iii) - HELD THAT:- As observed that there are completely contrary finding recorded by ld. CIT(A) in its appellate order, as opposed to finding of fact recorded by AO, firstly that payments to farmers are made by the assessee society, while the fact as recorded by AO in its assessement order is that the sugar mills are making direct payments to farmers for sugar cane procured from the farmers, while the assessee is getting commission payments from sugar mill. The second contrary finding recorded by ld. CIT(A) as opposed to finding of fact recorded by AO, is that it is engaged in the aspect of marketing of sugar cane right from sowing of the crop and until payment is realized by its member, but the facts recorded by AO clearly stipulates in para 4.1 (i) that the farmers who grow sugar cane , obtain membership of the assessee when the season comes for crushing of the sugar cane, the members , who desires to sell. The third contrary finding of fact recorded by ld. CIT(A) in its appellate order as opposed to finding of fact recorded by AO, is that the assessee supplies sugar cane grown by its member to the sugar mills and also realizes sugarcane prices from sugar mills, but the finding of fact recorded by AO in para 4.1(ii) is that the farmers who are its members take their sugar cane to the sugar mills named in parchi where weight of the sugar cane is taken by sugar mills authorities but under inspection supervision of the assessee’s staff and then the delivery of the sugar cane is accepted by sugar mill as also the AO has recoded finding of fact at page 7 that farmers sell their produce directly to the sugar mills, and for that the assessee is paid commission. Thus, it could be seen that completely contrary findings of fact are recorded by ld. CIT(A) while adjudicating appeal in favour of the appellant, which findings of fact is totally opposite/contrary to what was recorded by AO in its assessment order , thus the conclusion arrived at by ld. CIT(A) cannot be relied upon as there are no supportive evidences referred to by ld. CIT(A) in arriving at totally contrary/opposite findings of facts as opposed to finding of facts recorded by AO in its assessment. These are factual matters and correct finding of fact based on evidence is required to adjudicate this appeal,as it goes to the root of the matter for adjudicating this appeal. We are inclined to set aside appellate order passed by ld. CIT(A) and restore this issue to the file of ld. CIT(A) for denovo adjudication of the assessee appeal. Needless to say that powers of ld. CIT(A) are co-terminus with powers of the AO. The ld. CIT(A) is directed to record complete and correct facts based on evidence, of the complete chain of activities / processes undertaken by assessee with respect of sale of sugarcane to sugar mills by farmers, including chain of activities/ processes undertaken by farmers/ sugarmills in this entire process , from beginning to end, before arriving at its decision in set aside proceedings . This appeal filed by Revenue is allowed for statistical purposes
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