9911796707
TMI Blog2022 (12) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018-19. 2. Brief facts of the case are, assessee is a cooperative society has filed its return of income for the A.Y. 2018-19 on 04.10.2018 declaring total income of Rs.NIL after claiming deduction u/s. 80P of Income-tax Act, 1961 (in short "Act"). The return was processed u/s. 143(1) of the Act by the Centralized Processing Centre (CPC) on 03.09.2019 and determined the total income of the assessee at Rs.62,780/- by disallowing the employees contribution of Provident Fund which the assessee has remitted the same beyond the date specified in the respective Act after two days delay u/s.36 of the Act. Subsequently the case was selected for scrutiny under CASS and notices u/s. 143(2) and 142(1) of the Act were issued and served on the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Memento to Members of Rs.17,69,500/-, Rs.1,744,000/- and Rs.19,91,000/- respectively in the above said Assessment Years. He submitted that assessee claimed this expenditure as provision for Special Memento to Members and records the actual expenditure as soon as assessee receives the actual bills from the suppliers. Therefore, this expenditure is a recurring expenditure for the assessee. Therefore, it should be allowed as regular expenditure and should not be disallowed merely it is declared as provision. Ld. AR made a similar submissions for disallowance of encashment of staff leave of Rs.50,000/-. 5. In the alternate plea, Ld. AR submitted that without prejudice to the above submissions he submitted that the disallowance of any expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Year. Therefore, he prayed that this ground also be decided in favour of the assessee by dismissing the disallowance made by the CPC. 7. On the other hand, Ld. DR relied on the order of the lower authorities. 8. Considered the rival submissions and material placed on record, with regard to Ground No. 1 we observe that assessee has declared and claimed expenditure on special memento payable to the members and provision for encashment of staff leave. We observe from the record that the assessee claimed the expenditure which assessee has debited to the income and expenditure as provision for special memento to the members. However, it is brought to our notice that this is a regular expenditure claimed by the assessee in every Financial Ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a careful consideration we are in agreement with submissions of the assessee that the deduction claimed u/s. 80P of the Act is after determining the net taxable income and if any disallowance made in determining the above said net taxable income will increase the above said net taxable income which is clearly allowable as the deduction under Chapter VIA. Therefore, there is a merit in claim of the assessee. Since we have already allowed Ground No. 1 of the assessee it leads to only discussion on academic purpose. Therefore, we are inclined to keep the Ground No. 2 as open. 11. With regard to Ground No. 3 we observe that CPC has disallowed the Employee Contribution claimed by the assessee as a deduction and it is fact on record that ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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