TMI Blog2019 (2) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... ived from letting of godowns or warehouses for different purposes i.e. storage, processing and also facilitating the marketing of commodities. There is no merit in the observations of CIT(A) in this regard. The assessee has clearly pointed out that it was solely engaged in the purchase and sale of fertilizers, seeds and pesticides. It was also pointed out that during the year, the storage plant of assessee was closed. The profits earned on purchase and sale of fertilizers, seeds, i.e. from its members to its members was claimed as exempt under section 80P(2)(e) of the Act and the same was allowed in the hands of assessee. However, the receipts on account of hamali of ₹ 5,71,378/- and commission income of ₹ 4,72,710/- was held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... And Shri Anil Chaturvedi, AM For the Appellant : Shri P.S. Shingte For the Respondent : Shri Rajesh Gawali ORDER PER SUSHMA CHOWLA, JM: The appeal filed by assessee is against order of CIT(A)-2, Aurangabad, dated 22.08.2017 relating to assessment year 2014-15 against order passed under section 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. The assessee has raised the following ground of appeal:- 1. On the facts and in the circumstances of the case and in law the Lower Authorities erred in not granting the deduction u/s 80P of the Income Tax Act, 1961 for sum of ₹ 10,44,088/- by disregarding appellant s contention. 3. The only issue raised in the present appeal is against the claim of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was that Maharashtra State Co-operative Marketing Federation had issued a circular in this regard and directions were given to purchase pulses and soya bean under the Central Government Scheme for NAFED. The assessee thus, explained that according to circular ordering the assessee to start the purchase for the season 2013-14, hamali and other receipts such as commission were incidental to the activity of purchase of pulses and soya bean, hence the entire receipts were entitled to the deduction under section 80P(2)(e) of the Act. The CIT(A) vide para 12 held as under:- 12. Thus, it is evident that the deduction u/s. 80P(2)(e) is available to an assessee in respect of income derived from the letting of godowns or warehouses, only whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase pulses and store them and sell to specified parties. Such storing of pulses was in the nature of business carried on by the assessee and the charges received by assessee in the form of hamali and commission were eligible for deduction under section 80P(2)(e) of the Act. In this regard, he placed reliance on the decision of the Hon ble Bombay High Court in CIT Vs. Bhandara Zilla Sahakari Kharedi Vikri Sangh Ltd. (1995) 212 ITR 124 (Bom). 8. The learned Departmental Representative for the Revenue placed reliance on the orders of authorities below. 9. We have heard the rival contentions and perused the record. The issue which arises in the present appeal is the claim of deduction under section 80P(2)(e) of the Act on hamali and com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see as sub-agent and had directed it to purchase pulses from NAFED and supply it to the farmers, against which it has received the aforesaid hamali and commission. The activity undertaken by the assessee was in line with the activity carried on by it vis- -vis its members i.e. procurement of pulses and selling the same to its members. Here, the procurement was at the directive of the Central Government and for such services, the assessee received hamali and commission income. The said receipts in the hands of assessee are in line with the business activity carried on by it and hence, eligible for deduction under section 80P(2)(e) of the Act. 11. The Hon ble Bombay High Court in CIT Vs. Bhandara Zilla Sahakari Kharedi Vikri Sangh Ltd. (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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