9911796707
TMI Blog2021 (11) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment Year 2015-16. 2. The assessee has raised the following grounds of appeal: 1. The CIT Appeal Gandhinagar. Ahmedabad has eared in law and on 1'act of the case and not justified in making addition of income of Rs.Rs. 48,830/- being gross profit instead of net taxable real profit of Rs. 17,756/-from sale of "Ghee" 2. The CIT Appeal Gandhinagar Ahmedabad has eared in law and on fact of the case and not justified in disallowing claim of Rs. 50,000/- made u7^ 80P(2(c ) (ii) of I T Act.1961 and approving addition of Rs. 50,000/- made by A.O. 3. Your appellant crave, leave to add, alter, and or to eared modify substitute ail or any ground of appeal before final hearing if necessity so arise. 3. The 1st issue raised by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the same has not been taken into consideration. The assessee before the learned CIT (A) requested to take the net profit as taxable profit of the assessee instead of gross profit. 4.2 However the learned CIT (A) disregarded the contention of the assessee by observing that the assessee has claimed proportionate expenses against the sale of Ghee. As such these expenses were already claimed in the profit and loss account. Thus the learned CIT (A) rejected the contention of the assessee. 5. Being aggrieved by the order of learned CIT (A) the assessee is in appeal before us 6. The learned AR before us reiterated the submissions made before the Authorities below. 7. On the other hand the learned DR before us vehemently relied on the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities below by treating the gross profit as taxable income of the assessee. It was the duty of the revenue to pinpoint the infirmity in the expenses apportion by the assessee towards the activity under consideration. To our understanding, all the expenses apportion by the assessee cannot be ignored without bringing any cogent reason on record. Hence, we set aside the finding of the learned CIT (A) and direct the AO to take the net profit declared by the assessee as taxable income and delete the amount over and above such taxable income of the assessee. Hence the ground of appeal of the assessee is allowed. 9. The next issue raised by the assessee is that the learned CIT (A) erred in not granting the deduction provided under section 80P (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rival contentions of both the parties and perused the materials available on record. We note that under the provisions of section 80P(2)(c) of the Act, if a co-operative society is engaged in activities other than those specified in clause (a) or clause (b) of section 80P(2) (either independently of or in addition to all or any of the activities so specified), then such cooperative society will be allowed to claim following deduction from its profits and gains attributable to such activities: (i) Rs. 1,00,000 in case of consumers' co-operative society (ii) Rs. 50,000 in any other case 15.1 Further, the coordinate bench of Hyderabad Tribunal in case of Film Nagar Co-operative Society Ltd reported 91 ITD 27 by following the judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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