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TMI Blog2015 (12) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the alleged rental income computed @ 50% in respect of ginning and pressing charges received/earned by the assessee during the year ? 2] Whether the Tribunal below has perversely appreciated the facts and law while upholding the order of CIT(A) and setting aside the order of the A.O., resulting in serious miscarriage of justice warranting interference at the hands of this Hon'ble Court? 3] Whether the authorities below were justified in reopening the proceedings merely on the basis of change of opinion? 4] Whether the authorities below were justified in placing the reliance on the judgments not relating to the controversy in the matter to reopen the proceedings in a grossly perverse manner?" 2. The facts show that for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 80P(2)(e) of the said Act was disallowed. Because of this reasoning, the ratio of decision in case of Commissioner of Income tax vs. Bhandara Zilla Sahakari Kharedi Vikri Sangh Ltd, reported at [1995] 78 Taxman 341 (Bombay) was held not applicable. The assessee approached the CIT (A) and the appellate authority allowed the appeal after noticing the previous practice and after recording a finding in favour of the assessee. The above mentioned ruling was, therefore, found applicable to the case of the assessee. The ITAT rejected the appeal filed by the Revenue. 4. Learned Advocate Shri Parchure for the appellant has submitted that as the assessee was not receiving any commission separately from the Cotton Growers' Federation, the deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the agreement considered by the Hon'ble Apex Court in case of CIT vs South Arcot District Cooperative Society Ltd. reported at [1989] 176 ITR 117 was same. Applying that ratio, the Division Bench found that the whole of income derived under the fertilizer agreement was entitled to deduction under Section 80P(2)(e) of the said Act. As far as paddy agreement is concerned, the Division Bench notices that the activities were split into two groups viz; (i) pertaining to milling and (ii) pertaining to use of godowns. As sufficient material was not available on record to enable the adjudication of exact quantum of deduction, applying law in Supreme Court judgment in case of South Arcot District Cooperative Society Ltd. (supra), the Tribunal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis and also from processing its own gray cloth. The assessee claimed exemption from tax in respect of income from processing and facilitating the marketing of commodities. As the income from letting out godowns or warehouses for storage, processing or facilitating the marketing of commodities was exempted and claim for exemption was for income not falling in that category, the claim was declined. The High Court also accepted that view. Thus, there the claim was not towards letting out of godowns or warehouses. 8. The facts at hand show that in initial assessment order for the assessment year 20032004 the assessee disclosed gross total income at Rs. 31,22,952/. It claimed exemption under Section 80P(2)(c) of the said Act of Rs. 50,000/, u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dity i.e. cotton in relation to which the petitioner is receiving ginning and pressing charges is not stored in its godown. In absence of such assertion, the CIT (A) as also the ITAT are justified in holding that the controversy stands concluded by the Division Bench judgment of this Court in case of Commissioner of Incometax vs Bhandara Zilla Sahakari Kharedi Vikri Sangh Ltd (supra). 9. The ITAT has found that an audit objection was raised with regard to the availability of deduction under Section 80P(2)(e) of the said Act on 17-10-2006 by the Revenue Audit Party. The Assessment Officer did not accept that audit objection. However, a decision to issue notice under Section 148 of the said Act was taken because of the subsequent direction f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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