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2016 (1) TMI 632 - AT - Income TaxDeduction u/s.80P denied - Held that:- As per the provisions of section 80P(2)(a)(vi) the income from the collective disposal of labour of its members shall be deducted from the gross total of income. Therefore, the eligibility to earn deduction u/s.80P(2)(a)(vi) is in respect of the amount of profits and gains of a business which is attributable to the labour of the members of the cooperative society. It is only when collective disposal of labour of its members is made either manually or mechanically then the cooperative society will be entitled to get the deduction of such income. In the instant case, the facts are different. The assessee Cooperative society has got some work order from Praj Industries Ltd. which it had outsourced to some other concern on the condition of earning 1% commission. There is no involvement of the members of the cooperative society at all in executing the work. Therefore, we find no infirmity in the order of the CIT(A) in rejecting the claim of the assessee. - Decided against assessee
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