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TMI Blog2021 (8) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the fact that the agricultural produce was grown by its members. Since the assessee had been allowed deduction u/s 80P(2)(iii) in the earlier years, we are of the view that, in the interest of natural justice, the assessee may be provided with an opportunity to furnish the relevant details before the A.O. to support the claim for deduction u/s 80P(2)(a)(iii) of the Act. We set aside the order passed by Ld CIT(A) and restore this issue to the file of the AO for examining the claim of the assessee afresh in accordance with law. The assessee is also directed to furnish relevant details before the AO - Appeal filed by the assessee is treated as allowed for statistical purposes. - ITA No.2857/Bang/2017 - - - Dated:- 23-8-2021 - Shri N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revised return of income, the assessee claimed deduction u/s 80P of the Act to the extent of ₹ 3,07,28,992/- which included deduction of ₹ 50,000/- claimed u/s 80P(2)(c) of the Act. The remaining amount was claimed as deduction u/s 80P(2)(a) of the Act. During the course of assessment proceedings, the A.O. asked the assessee to file the details relating to deduction u/s 80P of the Act. The assessee furnished a reply stating as under: Ours is a Co-operative society engaged in the business of marketing of agricultural produce grown by our members. Apart from this, we are also engaged in the business of providing credit facilities to our members. Another business conducted by us is purchase of seeds, fertilisers, agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ict Co-operative Cotton Sales Jinning Pressing Society Ltd. Vs. CIT 177 ITR 418 5. The A.O. noticed that the assessee has failed to produce the details necessary to prove that it is eligible for deduction u/s 80P(2)(a)(iii) of the Act. The A.O. also held that the assessee is not eligible for deduction u/s 80P(2)(a)(i) of the Act since it is neither a primary agricultural society nor a primary co-operative agricultural rural development bank, which are eligible for deduction u/s 80P(2)(a)(i) of the Act. Accordingly, he disallowed the deduction claimed u/s 80P(2)(a)(i) 80P(2)(a)(iii) of the Act to the extent of ₹ 2,76,37,690/-. The A.O. allowed deduction of ₹ 50,000/- u/s 80P(2)(c) of the Act. The reconciliation of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above, the assessee has also received other miscellaneous income. 8. It is the submission of Ld. A.R. that (a) Profit from trading of fertilizers, seeds and others is deductible u/s 80P(2)(a)(iv) of the Act. (b) Commission earned on marketing of agricultural produce and interest income received from traders is deductible u/s 80P(2)(a)(iii) of the Act. (c) Interest income earned from its members is exempt u/s 80P(2)(a)(i) of the Act. He submitted that the assessee has claimed deduction as stated above, but the tax authorities have not appreciated the same. Alternatively, the Ld AR submitted that the assessee is a marketing co-operative society and it deals only with its members. Hence entire income is attributable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. On the contrary, the Ld. D.R. submitted that the A.O. has rejected the claim for the reason that the assessee has failed to furnish the details called for by him. He submitted that the condition for allowing deduction u/s 80P(2)(a)(iii) of the Act is that the agricultural produce should have been grown by its members. The assessee has failed to prove that the agricultural produce marketed by the assessee was grown by its members. 12. We heard the rival contentions on this issue and perused the record. Admittedly, the assessee did not furnish the details called for by the A.O., more particularly that the produce marketed by it was grown by its members. Before us, the Ld. A.R. submitted that the assessee is admitting farmers as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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