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2017 (10) TMI 317 - ITAT AHMEDABADDeduction u/s.80P(2)(e) - income from godown rent - Held that:- The provision of Sec.80P(2)(e) provides that any income derived by the co-operative Society from the letting of godowns or warehouse for storage, processing or facilitating the marketing of commodities shall be fully entitled for deduction. Since, the appellant satisfies the conditions that claim for deduction is justified. In our considered opinion, assessee claim u/s.80P(2)(e) is allowed. Income by way of interest or dividends - Held that:- The appellant has earned dividend and interest income from other Co-operative Societies and it has accordingly claimed deduction u/s.80P(2)(d) of the Act. The details filed by the appellant show that it has made investment in shares and debentures of various cooperative societies details of which are given in schedule for of the balance sheet. As per the provisions of this section any income by way of interest or dividends derived by any Co-operative society from its investment any other Co-operative Society the whole income would be entitled for deduction. Since, the dividend has been received from other Co-operative Societies the deduction is allowable. Deduction on account of agricultural commission income - Held that:- A perusal of the details filed by the assessee show that the appellant has earned this income from Gujarat State Co-operative Marketing Federation Ltd. for acting as an agent. The assessee company is acting as the nodal agency for all the smaller agencies at Taluka level. The provisions of the section clearly shows that the deduction is allowable for purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members. The assessee has acted as a marketing agent for supplying the fertilizers to its subsidiary cooperative societies meaning thereby that the product is being marketed to the members. Since, the income has been earned from a specified activities, the deduction claimed by the assessee were rightly allowed by the learned CIT(A). The reliance is also placed on the Supreme Court’s decision in the case of appellant himself Sabarkantha Zilla Kharid Vechan Sangh Ltd. V/s. CIT [1993 (8) TMI 2 - SUPREME Court]. It is also noted that the AO has disallowed the estimated expenditure disallowed by the appellant from the activity of commission as it has completely disallowed the claim. The claim made by the assessee was justified as the net profit was rightly allowed as deduction and not the gross income. CIT(A) has rightly allowed the agricultural commission to the assessee.
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