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2015 (2) TMI 163 - AT - Income TaxIncome recognition - method of computation of income followed from the inception of the society - reopening of assessment - CIT(A) deleting the income of the assessee brought to tax as profit of its business of manufacture and sale of salt - Held that:- CIT(A) has categorically discussed every points raised by the Assessing Officer and also the submissions of the assessee in the impugned order. Also going through the written submissions filed by the assessee wherein, in different bye laws, the objectives of the society are mentioned, we find that the clauses mentioned in the bye laws of the society are supplementary and complimentary to clauses 4(a) & 4(q). In fact clause 4(i) stipulates that the society pays on behalf of the members the assessment and malign rent. This also shows that the society is only managing the whole activity on behalf of the members to maximize the profits in the most beneficial way to the members. This activity is carried on for last several years and even before the operation of the present IT Act, which is IT Act 1962. The submissions of the assessee that earlier society was for the limited purpose of selling the products manufactured by the members in a profitable way by taking advantage of cooperative methods and the present society is acting on similar lines, therefore, denial of the same is not legally correct by taking different plea by the AO. It is a fact that the bye laws cannot be segregated and read to hold the income generated as income of the assessee. We have gone through the case laws cited by the assessee, which are also supporting the case of the assessee. In view of this, we reject grounds of appeal taken by the revenue. - Decided in favour of assessee.
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