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TMI Blog2016 (12) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT(A) in this regard. Another aspect noted by the CIT(A) from the perusal of Profit & Loss Account was that the assessee was engaged in various PWD related contracts for earning income on account of providing training under various schemes. Accordingly, the order of CIT(A) is upheld in denying the claim of deduction under section 80P(2)(a)(ii) of the Act. In respect of other claims made in the grounds of appeal under section 80P(2)(a)(vi) of the Act, no plea has been raised before the authorities below except for claiming deduction under section 80P(2)(a)(ii) of the Act and hence, the same also is rejected - Decided against assessee Disallowance under section 40A(3) - Held that:- The assessee had failed to give any justificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) of the Income-tax Act, 1961 (in short the Act ). 2. The assessee has raised the following grounds of appeal:- 1] The learned CIT(A) erred in denying the deduction u/s 80P to the assessee society on its assessed income on the ground that the assessee was not entitled to claim deduction . 2] The learned CIT(A) erred in holding that the assessee society was not engaged in the activity of 'cottage industry' and hence , it was not eligible to claim the deduction u/s 80P(2)(a)(ii) of the Act . 3] The assessee submits that it was engaged in collective disposal of the labour of i ts members and hence, the income assessed of ₹ 25 , 94,010/ - was eligible for deduction u/s.80P(2)(a)(vi) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s decided exparte the assessee. 4. The issue arising in the present appeal is against the claim of deduction under section 80P(2)(a)(ii) / (vi) of the Act by way of grounds of appeal No.1 to 3. Further, the assessee is aggrieved by the order of CIT(A) in making disallowance under section 40A(3) of the Act at ₹ 8,44,200/- and under section 40(a)(ia) of the Act at ₹ 59,000/-. The assessee is also in appeal against the addition under section 68 of the Act at ₹ 3,79,500/- by way of ground of appeal No.6. The assessee without prejudice to the above grounds of appeal have also made an alternate claim that in case the deduction under section 80P(2)(a)(ii) is granted to the assessee, then the deduction is to be allowed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 40(a)(ia) of the Act. 6. Before the CIT(A), the assessee filed written submissions which are reproduced under para 5 at pages 2 to 5 of the appellate order. The CIT(A) first decided the issue of claim of deduction under section 80P(2)(a) of the Act. The findings of CIT(A) vide para 6 and 6.1 are as under:- 6. I have carefully gone through the assessment order, facts of the case and the submission of the appellant. The AO in the assessment order has denied deduction u/s 80P(2)(a)(ii), 80P(2)(a)(iii) and 80P(2)(a)(iv) as claimed by the appellant in its return of income. The AO was of the view that the appellant co-operative society is not engaged in any of the activities mentioned in section 80P(2)(a) of the Act. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnish the details of agricultural implement, seeds, fertilizers, etc. that it had purchased and sold during the year. The appellant was also specifically asked to furnish the details of processing of agricultural produce that it has claimed to have undertaken in the statement of facts. The appellant was also asked to furnish the details of the works awarded by the State Government for collective disposal of labour and produce labour muster and details of payments made to them. The appellant was also given an opportunity to furnish justification for claiming deduction u/s 80P(2)(a) of the Act. The appellant, however, could not furnish any material in support of its claim for deduction u/s 80P(2)(a) of the Act. It continued to say that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocessing, which was the requirement of claiming the said deduction. The assessee during the year under consideration had shown the opening stock of raw material, purchases, sales and finished goods at Nil. So, the claim of assessee that it was engaged in the business of cottage industries was held to be incorrect. The assessee has not controverted the finding of CIT(A) in this regard. 8. Another aspect noted by the CIT(A) from the perusal of Profit Loss Account was that the assessee was engaged in various PWD related contracts for earning income on account of providing training under various schemes. Accordingly, the order of CIT(A) is upheld in denying the claim of deduction under section 80P(2)(a)(ii) of the Act. 9. In respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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