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2023 (2) TMI 448 - AT - Income TaxBenefit of deduction u/s. 80P(2)(a)(iii) - interest received by Co-operative Society from Co-operative Bank - AO was of the opinion that the activities carried on by the assessee are neither incidental nor ancillary to the marketing of agricultural produce of its members - HELD THAT - We note that by placing reliance on the orders of this Tribunal in the case of Rena Sahakari Sakhar Karkhana Ltd. 2022 (1) TMI 419 - ITAT PUNE held that the interest received by Co-operative Society from Co-operative Bank is eligible for deduction u/s. 80P(2)(d) of the Act. We find no evidence whatsoever produced by the assessee before us that the assessee is entitled to get deduction on the interest received from Co-operative Bank is eligible for deduction u/s. 80P(2)(d) of the Act. Therefore, having no evidence before us, we find no infirmity in the order of CIT(A) and it is justified. Thus, ground No. 1 raised by the assessee is dismissed. Disallowance made on account of compound wall expenses - HELD THAT - We note that the assessee did not submit any reply to the satisfaction of both the authorities below that a new compound wall erected at any place of the assessee s business premises. CIT(A) confirmed the order of AO in the absence of any evidence. Therefore, having no evidence before us, we find no infirmity in the order of CIT(A) and it is justified. Thus, ground No. 2 raised by the assessee is dismissed. Addition made on account of furniture repair maintenance expenses - test of enduring nature applied to the purpose for which a particular expenditure is incurred is not a conclusive test - HELD THAT - CIT(A) considering the facts and circumstances of the case clearly observed that no material evidence or explanation offered by the assessee against the finding given by the AO. We find no evidence in support of the claim of assessee were filed and in the absence of which we have no hesitation to confirm the order passed by the CIT(A). Therefore the order of CIT(A) in confirming the addition made by the AO on account of furniture repair maintenance expenses is justified. Thus, ground No. 3 raised by the assessee is dismissed.
Issues:
1. Challenge to restriction of deduction u/s. 80P(2)(d) of the Act. 2. Disallowance of compound wall expenses. 3. Addition made on account of furniture repair maintenance expenses. Issue 1: Challenge to restriction of deduction u/s. 80P(2)(d) of the Act: The assessee appealed against the order restricting the deduction u/s. 80P(2)(d) of the Act. The AO denied the deduction, stating that the activities were not incidental to marketing agricultural produce. The CIT(A) upheld the decision, citing a Tribunal order. The assessee failed to provide evidence supporting eligibility for the deduction. The Tribunal found no infirmity in the CIT(A)'s order and dismissed the appeal. Issue 2: Disallowance of compound wall expenses: The AO issued a notice regarding compound wall expenses, to which the assessee did not respond. Consequently, the AO added the amount to the total income. The CIT(A) confirmed this decision due to the lack of evidence provided by the assessee. The Tribunal, noting the absence of evidence, upheld the CIT(A)'s decision and dismissed the appeal on this ground. Issue 3: Addition made on account of furniture repair maintenance expenses: The AO disallowed a portion of the furniture repair maintenance expenses claimed by the assessee, considering them as capital assets providing enduring benefit. The CIT(A) upheld the disallowance, as the assessee failed to provide material evidence or explanation against the AO's findings. The Tribunal found no evidence supporting the assessee's claim, leading to the confirmation of the addition by the CIT(A) and the dismissal of the appeal on this ground. In conclusion, the Tribunal dismissed the assessee's appeal against the orders related to the restriction of deduction u/s. 80P(2)(d), disallowance of compound wall expenses, and addition on account of furniture repair maintenance expenses. The decision was pronounced on 11th January, 2023.
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