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2015 (4) TMI 1132 - ITAT AHMEDABAD

2015 (4) TMI 1132 - ITAT AHMEDABAD - TMI - Addition in respect of Administrative & managerial expenses related to non-agricultural activities - deduction u/s. 80P computation - Held that:- In the present case Assessee was undertaking various activities and out of the various activities, profit from some activities were exempt and from some other activities the profit was not exempt u/s 80P and accordingly A.O has re-worked out the amount eligible for deduction u/s. 80P. We find that ld. CIT(A) w .....

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Before us, Revenue has not brought any material on record to controvert the findings of ld. CIT(A). In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A) and thus the grounds of Revenue are dismissed. - Decided in favour of assessee. - I.T. A. No. 3171/AHD/2011 - Dated:- 24-4-2015 - Shailendra Kr. Yadav (Judicial Member) And Anil Chaturvedi (Accountant Member) For the Appellant : Roop Chand, Sr. D.R. For the Respondent : Tushar P. Hemani, A.R. ORDER Anil Ch .....

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s. Nil after claiming deduction of ₹ 56,98,026/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 10.12.2009 and the total income was determined at ₹ 23,17,376/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 12.09.2011allowed the appeal of the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us and has raised the following gr .....

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A and the ratio of judgment of Hon'ble High Court, Rajasthan in the case of CIT Vs Rajasthan Rajya Sahakari Upbhokta Sangh Ltd. (1996) 84 TAXMAN 33 (Raj.) and also decision in the case of Kota Co-operative marketing Society Ltd. Vs CIT(1994) 76 TAXMAN 245 (Raj.) to tax the profit earned from non-agricultural activities and interest from nationalized bank. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A), Valsad ought to have upheld the order of the A.O. 4. .....

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t mixed activities and of the various activities carried on by Assessee, the profits earned from some of the activities were exempt and some of them were not exempt u/s. 80P of the Act but according to the A.O., Assessee has claimed deduction u/s. 80P on the entire profits. He was of the view that the interest earned by the Assessee from nationalized bank and other activities were not exempt u/s. 80P (2) and therefore the Assessee was issued a show cause notice and asked to justify its claim to .....

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me, applied Rule of 3 basis, for working out the eligible deduction u/s. 80P and restricted the claim of Assessee. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who after considering the submissions of the Assessee deleted the addition by holding as under:- DECISION ; I have carefully gone though the submissions made before me by the Ld. A.R of the appellant and the findings of the A.O in the assessment order and the various judicial decisions as relied upon by bo .....

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ing records of all activities, it is difficult to decide the net profit from agricultural and non- agricultural activities. He observed that when there is uncertainty of matching concept exists or cascading effect cannot be identified, in such case Rule 3 is applied. There was no dispute on item-was not supported by deduction u/s. 80P. In my view, the action of the AO was not supported by valid reasons and corroborated by evidences brought out in records. The appellant has maintained separate se .....

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es done with the Banks. I have also perused the computation of income submitted by the appellant and found no anomaly therein. The AO has not brought on record what he means by Rule 3 and how that is applicable in this case. In the interest of revenue and fairness to the appellant what is to be worked out is the correct application of law to the fact and circumstances of the case. In this case, in my view, the dispute was the chargeability of income. The AO, instead of bringing on record which s .....

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