TMI Blog2018 (8) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the assessee has directed to allow the expenses incurred in relation to concern income. Accordingly, the ld. AR prayed before us to give the direction to the lower authorities for allowing the expenses incurred by it in relation to other income not eligible for deduction u/s 80P of the Act. Matter remanded back. - I.T.A. No. 1069/Ahd/2017 - - - Dated:- 31-7-2018 - Shri Waseem Ahmed, Accountant Member And Smt Madhumita Roy, Judicial Member Appellant by : Shri Pritesh Shah, A.R. Respondent by : Shri Prasoon Kabra, Sr. D.R. ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax(Appeals)-7, Ahmedabad [CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale of poultry items like chicken/eggs, Bakery items, Milk-Ice Cream, Provision/Grain and pulses, Sweet Shop, etc. The assessee society is also run STD/PCO booth. Other than these the assessee society was also authorized by Torrent Power Limited for the collection of electricity bills on behalf of the company and getting a commission for that. The assessee from all the activities as stated above has shown a net profit of ₹ 26,60,050/- only including interest income on loan given to the members. The entire amount of that profit was claimed as exempted u/s 80P of the Act. On a question by the AO about the deduction claimed by the assessee u/s 80P of the Act, the assessee submitted that its activities are limited to the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ICICI Bank interest 285 Total 788172 The assessee also claimed that it is also eligible for exemption of ₹ 1,00,000/- u/s 80P(2)(c) of the Act. However, the ld. AO disregarded the contention of the assessee and held that the assessee is eligible for deduction u/s 80P(2)(a)(i) of the Act only for the amount earned from the financing activities with the members. Accordingly, the AO disallowed the deduction claimed by the assessee for ₹ 6,88,172/- (7,88,172 1,00,000, i.e. deduction u/s 80P(2)(c) ) and added to the total income of the assessee. 6. Aggrieved, assessee preferred an appeal to ld. CIT(A) who confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT has given the direction to allocate the expenses among different heads of income. The relevant extract of the order is reproduced below: 11. Before us, the ld. counsel for the assessee reiterated the claim of exemption. There is no dispute that the assessee society is registered as Credit Co-operative Society and not as Labour Co-operative Society which are meant for providing the labour force in bulk as per requirement of the vendors. Therefore, we do not find any merit in the claim of the assessee because Section 80P(2)(a)(vi) provides for the collective disposal of labour of its members . 12. In our considered opinion, the assessee society do not fit into this category and hence not eligible for exemption. We declin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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