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2022 (3) TMI 126 - AT - Income TaxDisallowance of deduction u/s 80P in respect of storage income derived from CAP storage - HELD THAT:- There is no specific definition of “godown” and “warehouse” prescribed in Income-tax Act, 1961. We also observe that section 80P does not state in specific terms that there must be a structure of permanent nature. What section 80P requires is only “godown” or “warehouse”. As noted earlier, the Ld. A/R has made a considerable submission on the definition of “warehouse” prescribed in the laws governing the development and regulation of warehousing, namely, Section 2(s) of The Warehousing (Development and Regulation) Act, 2007 and Section 2(d) of The Madhya Pradesh Agricultural Warehouse Act, 1947. We have carefully considered these definitions and observe that even a protected place or protected enclosure used for the purpose of storage of commodities, is also a “warehouse” CAP storage is a protected place for storage of commodities approved by the statutory Orders. In view of these factual submissions and legal position, we feel that the CAP storage must be held to be a “warehouse” for the purpose of section 80P and we hold so. At this stage, we also note that the section 80P is a beneficial provision and the purpose is to incentivize the warehousing activity of co-operative societies. Therefore, the interpretation of section 80P must be liberal so as to advance the avowed objective. Taking into account all these aspects, we are persuaded to conclude that the income from letting of CAP storage derived by the assessee is eligible for deduction u/s 80P and there is no justification in denying the same to the assessee. Therefore, we delete the disallowance made by lower authorities. This ground is, therefore, allowed. Disallowance of claim of deduction u/s 80P on account of depreciation (protective) - HELD THAT:- We observe that the depreciation disallowance of ₹ 1,63,23,529/- has been fully deleted by the Ld. CIT(A) and this deletion has already attained finality as there is no appeal or cross-objection from Revenue contesting this. Regarding the disallowance out of deduction u/s 80P, we have already deleted the same in preceding paras. Thus both of the disputes, namely the disallowance of depreciation u/s 32 and disallowance of deduction u/s 80P made by Ld. AO stand fully settled in favour of the assessee at this stage. Being so we feel that the issue of protective disallowance of deduction u/s 80P on account of consequential effect of depreciation-disallowance, does not survive further. Appeal of assessee is partly allowed.
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