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TMI Blog2017 (3) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... o-operative Ltd., consisting of skilled and unskilled labour and executing contract works in various Government departments. For the impugned assessment year, assessee admitted income of Rs. 12,16,350/- claimed the entire amount of exemption u/s. 80P(2)(a)(vi). In the assessment u/s. 143(3), Assessing Officer (AO) disallowed the deduction on the ground that assessee was a civil contractor for GHMC and is not a labour contractor. Further, he estimated the profit at 8% of gross contract receipts and determined the total income at Rs. 14,28,370/-. 3. Before the Ld.CIT(A), assessee submitted that it is being filing returns in the status of society and deduction u/s. 80P has been allowed in earlier years on similar facts. Assessee also submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeared for hearing and case discussed. During the scrutiny proceedings the AR has been informed of various unverifiable nature of vouchers in material charges amounting to Rs. 4,40,000 and Rs. 2,00,000 towards hire charges. For this the AR stated that since the society is meant for member and their relatives and kinsman, all the payments are made to them only. He further stated that the society is under continuous statutory audit. When pressed further, the AR stated that he has no objection for disallowances (out of ambit of 80P) and stated that they will not contest in appeals." In any case from the perusal of P&L a/c, the quantum of expenses debited to P&L a/c with reference to material Rs. 50,72,269 machinery hire charges, Rs. 8.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of assessee, in the case of CIT Vs. M/s. Uralungal Labour Contract in ITA No. 1722 of 2009 dt. 29- 10-2009 (supra), it was held by Hon'ble Kerala High Court as under: "4. So far as the merits of the case is considered, even though no specific question is raised in the appeals filed, Senior Standing Counsel for the appellant submitted that this is an omission and department wants to amend the appeal to cover such a question also. We do not think any written amendment is required for this court to permit the counsel to raise a question of law, if it is substantial question of law warranting decision by this court under Section 260A of the Income Tax Act. We, therefore, permitted the counsel to raise this question orally and argue on meri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial involved is also sand where the labour involved is substantial and the income earned is also not found to be attributable to profit in trading and not attributable to labour inputs. We, therefore, hold that the Tribunal rightly granted deduction on the entire income of the Society under Section 80P(2)(vi) of the Act. Consequently the appeals are dismissed". 6.1. Since in this case also even though assessee is not involved in trading but is engaged in contract works, which included material being supplied by the Government, I am of the view that assessee is eligible for claim u/s. 80P(2)(a)(vi). No other contrary judgment has been brought to my notice. Respectfully following the principles laid down in the above judgment, I direct the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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