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2017 (2) TMI 1270 - HC - Income TaxDeduction u/s 80P - Held that:- Section 80P is part of Chapter VI-A which deals with deductions to be made in computing total income. Section 80P is under Part "C", i.e., deductions in respect of certain incomes. Under sub-section (1) if gross total income includes income referred to in sub-section (2), the sums specified in sub-section (2) are deductible in accordance with the said section, i. e., section 80P. Sections dealing with seeds and letting out godowns admittedly come under sub-sections (2)(a)(iv) and (2)(e). On this aspect the learned counsel for the Revenue has no dispute. Under sub-section (2)(a) the whole of the amount of profits and gains of business attributable to one or more of activities under sub-section (2) are deductible. Similarly, under section 80P(2)(e) the whole of the income is deductible. Under section 80P(2)(c)(ii) deduction is permissible to the extent of ₹ 50,000 only. Letting of godowns in fact comes in sub-section (2)(e) and here also the whole of income is deductible. The assessee's activities on its own were not referable to section 80P(2)(c)(ii) which was taken by the assessing authority. There was no reason to pick various sub-sections of section 80P by the assessing authority in his own way. In fact, section 80P is applicable in respect of a different kind of person, i.e., co-operative societies. If it permits the entire income deductible, how and in what manner profits and gains are further utilized or divided by the assessee, would not be relevant. It is for this reason, in our view, sections 40A(7)(b) and 43B(f) would not be attracted. The assessee did not claim any deduction under the head of sum payable in lieu of any leave of credit of employees or in respect of any provision made for payment of gratuity to its employees on their retirement. The assessee claimed the entire business income and profit under the special provision, i. e., under section 80P, with reference to receipts to various heads referable to section 80P. Thus there was no justification or occasion to look into any other provision under Chapter VI-A, Part "D". - Decided in favour of assessee.
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