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2022 (6) TMI 77 - AT - Income TaxDeduction u/s 80P denied - this assessee is a milk cooperative who has claimed the impugned deduction regarding income derived from sale of “Shenkhat” and “Palapachola” to its members - Profit on selling of Shenkhat and Palapachola is not seen for the benefit of members and not according to objectives mentioned in Bye laws of society. The motive of supplying the shenkhat and palapachola is to earn more profit which is outside from the preview of objectives mentioned in Bye-laws of the society - HELD THAT:- No merit in the learned lower authorities’ stand first of all since this is not a case involving bogus purchase of the twin foregoing twin fodder products & sold to the members. We reiterate that the assessee’s sole substantive grievance claim is u/s 80P deduction wherein it has sold organic manure to its milk producers so as to ensure better production of fodder meant for consumption of the milch animals thereby increasing dairy outputting. This crucial direct nexus amongst the assessee, the organic manure sold at its behest for better fodder production & milk producers milch animals appears to have escaped the learned lower authorities’ valuable consideration. Hon’ble apex court recent decision in Mavilayi Service Co-operative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] has settled the law that we ought to adopt liberal construction in an instance involving section 80P deduction. We accordingly hold in light of the foregoing factual and legal backdrop that the assessee is very much entitled for section 80P deduction in issue - Decided in favour of assessee.
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