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2016 (6) TMI 86 - ITAT CHENNAI

2016 (6) TMI 86 - ITAT CHENNAI - TMI - Invoking powers u/s. 263 by CIT against claiming deduction u/s. 80P - Held that:- From the facts of the case it is apparent that the ld. Principal CIT has invoked his powers u/s. 263 because the identical issue was pending before the Hon’ble Chennai High Court though the same was decided in favour of the assessee by this Bench of the Tribunal and also by other the higher judiciary. In these circumstances, it can be only considered, as another possible view .....

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Act in the relevant case before us. Therefore, we hereby quash the order passed by the ld. Principal CIT. - Decided in favour of assessee - I.T.A. No. 1103/Mds/2015 - Dated:- 2-5-2016 - Shri N. R. S. Ganesan, Judicial Member And Shri A. Mohan Alankamony, Accountant Member For the Appellant : Shri T. Banusekar, CA For the Respondent : Shri S.Balasubramaniam, CIT ORDER Per A. Mohan Alankamony, Accountant Member This appeal of the assessee is directed against the order of the Principal Commissioner .....

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khs claimed by the assessee. The second ground raised by the assessee with respect to maintenance expenditure of ₹ 6 lakhs is not pressed by the ld. A.R and therefore, dismissed as such. Thus, the lone ground that remains to be adjudicated is with respect to ground No. (i) i.e., invoking powers u/s. 263 by the ld. Principal CIT against claiming deduction u/s. 80P of the Act. 3. Brief facts of the case are that the assessee is a Cooperative Society in which majority of the members are repre .....

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ligible for deduction U/s. 80P because its members were classified as Class A and B viz., one with the voting power and the other without voting power. The learned Principal CIT was of the view that though the Chennai Bench of the Tribunal and certain other higher judiciary had decided the matter in favour of the assessee, the Department has filed appeal to keep the matter alive, and therefore it is binding on his part to invoke powers U/s. 263 of the Act, accordingly he held the order of the As .....

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u/s 80P(2)(a)(v) when the provisions are clear that the deduction is not available when the society uses power for the processing of the agricultural produce. The A.R has not refuted the fact that the assessee-society is using power for the processing of green tea into black tea. In view of the fact that the assessee-society is using power for processing the tea, the exemption is not available for the assessee u/s 80P(2)(v) also. 2.7 With regard to the question of whether manufacturing of tea f .....

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stated that the Department has not accepted the decision of the Hon'ble ITAT, Chennai in the above case and has preferred an appeal before the Hon'ble High Court of Chennai, as substantial question of law is involved. Hence, in order to keep the issue alive and in line with the stand taken by the Department, the submissions of A.R are not accepted. 2.9 Coming to the issue of procurement of agricultural produce from non-members, i.e B class members, who do not have share capital ad do no .....

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1 on this issue has also been allowed by the CIT(A) vide order in Appeal No.168/13-14 dated 12.11.2014 in view of the case laws memntioned above. Again, the Department has contested th order of the Hon'ble ITAT in the case of M/s SL(SPL), 151, Karkudalpatty Primary Agricultural Cooeprative Credit Society Ltd vs ITO before the Hon'ble High Court, Chennai, which is still pending. As such, in order to keep the issue alive and in line with the stand taken by the Department, the submissions o .....

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