2017 (9) TMI 1998 - AT - Income Tax

Deduction u/s 80P(2)(a)(vi) denied - income of the society has nothing to do with the collective disposal of the labour of its members but is entirely from out of the price realised by it for the sale of toddy through the society's own toddy shops - assessee purchase of toddy from its members and non- members on payment of the agreed remuneration and its sale through the toddy shops established by the society itself - income of the society has nothing to do with the collective disposal of the labour of its members but is entirely from out of the price realised by it for the sale of toddy through the society's own toddy shops - HELD THAT - Respectfully following the said decision of Hon'ble High Court in assessee s own case for assessment year 2008-09 and 2009-10 2014 (1) TMI 1080 - ITAT COCHIN we do not find any illegality or infirmity in the order of the CIT(A) denying the deduction to the assessee under section 80P(2)(a)(vi) of the Act. We, therefore, confirm the order of CIT(A) dismissing the appeal of the assessee in both the assessment years.

Summary

Issues: Claim of deduction under section 80P(2)(a)(vi) of the Act.

Analysis:
The judgment by the Appellate Tribunal ITAT Cochin involved appeals by the assessee regarding the claim of deduction under section 80P(2)(a)(vi) of the Act. The Tribunal carefully considered the submissions from both sides and reviewed the orders of the tax authorities. It was noted that a similar issue had been decided by the Hon'ble Jurisdictional High Court in the case of the assessee for the assessment years 2008-09 and 2009-10. The High Court had previously held that the society in question, involved in the purchase and sale of toddy through toddy shops, was not entitled to the benefit of section 80P(2)(a)(vi) of the Act. The High Court's decision emphasized that the income of the society did not arise from the collective disposal of labor but from the sale of toddy through its own shops. Even though toddy was collected from non-members, the society's income was primarily derived from the sale of toddy. Consequently, the Tribunal upheld the order of the CIT(A) denying the deduction under section 80P(2)(a)(vi) to the assessee for the relevant assessment years, following the precedent set by the High Court's decision in the assessee's own case.

Therefore, the Tribunal confirmed the dismissal of the appeals by the assessee, aligning with the High Court's ruling and finding no fault in the CIT(A)'s decision to deny the deduction under section 80P(2)(a)(vi) of the Act. The judgment was pronounced in open court on 26/09/2017.