9911796707
TMI Blog2011 (4) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... as clearly erroneous and prejudicial to the interest of the revenue which justified invocation of powers under Section 263 of the Act - The view taken by the Tribunal cannot, thus, be sustained - The appeal is allowed in favour of revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... appears that the order of the A.O. was erroneous." 3. On appeal of the assessee to the Tribunal, the order of the Commissioner has been set aside on the ground that the order of Assessing Officer could not be held to be prejudicial to the interest of revenue. It was observed:- "Thus, as per provisions of the Act, the assessee was entitled to such deduction u/s 80P(2)(e). In fact such deduction in respect of storage charges amounting to Rs.57,88,204/- received from others had been claimed and allowed at the time of completing the original assessment. The claim of assessee is also supported by the judgment of Rajasthan High Court in the case of CIT Vs.Rajasthan State Warehousing Corpn., 210 ITR 906, where it has been held that only income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges like Mandi charges, Mandi labour charges, internal movements, storage charges, establishment charges, interest charges etc. Thus, the assessee had not only purchased wheat but had rendered various other services also. It is also not denied that assessee owned warehouses and godowns where the wheat purchased was stored. Storage charges of such a huge amount of Rs.5.87 crores were paid by own godowns the Govt. for providing storage facilities. Had the FCI owned its own godowns the Govt. would have not paid such storage charges. The object of providing deduction in respect of income derived by cooperative societies from letting of godowns and warehouses is to promote the development of rural economy. In this case the object of providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Panchkula holding that deduction under Section 80P(2)(e) is available only in respect of income from letting out for storage and if the assessee used the storage only for marketing, the deduction is not permissible. The observations therein are:- "In the present case, it has been clearly held that the assessee was purchasing the goods and then selling the goods to FCI and in such a situation, storing was part of business of the assessee and did not amount to letting out of storage capacity as till the goods were sold to FCI, goods belonged to the assessee itself and not to the FCI. This being the factual situation, the matter is fully covered by judgment of the Hon'ble Supreme Court in Surat Venkar Sahakari Sangh and A Ventaka Subbarao ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
