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TMI Blog2023 (6) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... And 157/Ahd/2023 - - - Dated:- 14-6-2023 - Ms. Suchitra Kamble, Judicial Member For the Assessee : Shri Pankaj Shah, AR For the Revenue : Shri Sanjay Jain, Sr. DR ORDER These two appeals are filed by the Assessee against two separate orders dated 29.09.2022 27.09.2022, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Years 2017-18 2018-19 respectively. 2. The Assessee has raised the following grounds of appeal :- ITA No.156/Ahd/2023 for A.Y. 2017-18 1. On facts and circumstances of the case and in law the Ld. CIT(A) has failed to delete the disallowance made by the Ld. A.O. of Rs. 9,43,000/-. Therefore, your appellant prays your good self to delete the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer that the interest expense claimed by the Pump Division and interest income shown in the HO Division and claimed as deduction of Rs. 9,43,000 is correct. After taking cognisance of the assessee s reply, the Assessing officer disallowed Rs. 9,43,000/- which was claimed under Section 80P of the Act. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that there is a delay of 103 days in filing the appeal for which the assessee has filed the affidavit. The reasons explained by the assessee for the delay appear to be genuine as the email id. submitted was not checked due to certain difficulties on the part of the assessee soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Pump Division cannot be considered as commercial and, therefore, the claim as deduction under Section 80P(2)(a) of the Act is justifiable. The Ld. AR submitted that if the Pump Division takes loan from outsiders, then it had required to incur interest expenses, renewal charges, audit charges, required to provide security etc. As the pump division had taken loan from the HO division so the interest charged by the HO division claimed as the expenditure and contrary the HO division had also shown the same as its income. Even the HO Division had not given any one amount of finance to the pump division. During the year, pump division had repaid the same to the HO division and also taken back from the HO division. The Ld. AR submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est expenses are not incurred by the Pump Division, then it shows over profit, which gives false financial information. Even if the HO division not taken the interest income from the Pump Division, then how it could justify the finance made to the Pump Division. 7. The Ld. DR submitted that interest is clearly derived from commercial activity of Pump Division which is not exempt under Section 80P of the Act. The Ld. DR further submitted that the assessee is not a Consumer Co-operative Society since members not consuming articles such as Petrol Diesel supplied by assessee (Petrol Pump Branch), therefore, the CIT(A) has rightly confirmed the order of the Assessing Officer thereby disallowing deduction under Section 80P(2)(a)(i) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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