9911796707
TMI Blog2022 (11) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... he A.Y. 2015-16. 2. The brief facts of the case the assessee is a Co-operative Society registered under Gujarat Co-operative Society Act engaged in collection of Milk from local small milk producers and supply to SNR District Milk Producers Union. The assessee filed its return of income for the A.Y. 2014-15 on 13.09.2015 declaring total income of Rs. NIL. During scrutiny assessment proceedings the Assessing Officer noticed that the assessee had paid Rs. 2,25,48,312/- for purchase of milk to one of its member Shri Raghubhai Algotar. Hence, his statement was recorded under Section 131 of the Act on 13.11.2017, whereas he has stated the sale of milk was hardly Rs. 15,000/- per month from the members of the society, whereas the sales made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta Dhadda (SLP (Civil) Diary No. 9431/2018) dated 28.03.2018. However, the Ld. CIT(A) without going into the statement recorded of Shri Karsanbhai Bharwad and furnishing of copies to the assessee and providing cross-examination but dealt with the case on merits relying upon Section 80P(2)(b) and held that the condition to get eligible for deduction, Produce has to be raised by members, which is not satisfied in assessee's case, since the profit is attributable also to purchase of milk from non-members. Therefore, the disallowance made by the AO does not require any interference and thereby confirmed the assessment order. 4. Aggrieved against the same the assessee is before us raising the following grounds of appeal: "1.1 The order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by AO is erroneous. It is therefore prayed that the disallowance of deduction u/s 80P(2)((b) of Rs,6,80,976/-made by the AO should be deleted." 5. None appeared on behalf of the assessee, even in the previous five hearings none appeared on behalf of the assessee in spite of service of notices. So, with the help of the Ld. Sr. D.R. Mr. B. D. Gupta, we proceed to dispose of this appeal. The Ld. D.R. submitted that the statement recorded under Section 131 of the Act from Shri Karshanbhai Bharwad who is a Mantri of the assessee co-operative society, wherein he has clearly admitted the milk was procured from its members as well as non-members. Thus, the statement is not recorded from any third party. The assessee is also not produced any de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole of the amount of profits and gains of such business;]...." 7. Clause b of Section 80P(2) talks about a Co-operative Society to be a primary society engaged in supplying of milk and other goods raised or grown by its members to, a federal co-operative society engaged in the same business or a Government or local authority or a Government company. Thus, the provision clearly prescribes about the procurement of the goods from the Members of the society and not from the non- Members. As submitted by the Ld. D.R. the statement recorded from Shri Karsanbhai S. Bharwad who is the Mantri of the assessee cooperative society and not a third person. Therefore, the case laws relied by the assessee is clearly distinguishable and not applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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