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TMI Blog2001 (6) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The first notice under s. 143(2) was issued on 24th Feb., 1993, which is illegal and bad in law. Though the provision of s. 143(2) are clear and unambiguous the learned CIT(A)-VII erred in upholding the legality of the notice and dismissed the ground without mentioning any reason for doing so. (2) That the learned CIT(A) erred in upholding the following additions without looking into the merits and provisions of law. (a) Disallowance of Rs. 25,000 out of entertainment expenses. (b) Disallowance of Rs. 66,992 out of vehicle expenses. (3) That the CIT(A) has wrongly disallowed deduction under s. 80P(2)(a)(iii) and (iv) and 80P(2)(e) on account of store, cattle feed and rental income of Rs. 27,608, Rs. 32,104 and Rs. 35,932, respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. He also contended that the assessee is a co-operative society and its books of accounts were subject to audit under the concerned Co-operative Act. The audit report was submitted along with the return of income and the said audit report did not carry any adverse qualification in respect of entertainment expenses and vehicle expenses. These expenses were incurred for the purpose of running the business of co-operative society. He, therefore, prayed that the said expenses be allowed. The learned authorized representative referred to the judgment of Hon'ble Gujarat High Court in the? case of CIT vs. Karjan Co-op. Cotton Sale, Ginning Pressing Society (1981) 21 CTR (Guj) 185 : (1981) 129 ITR 821 (Guj). 5. The learned Departmental Represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92 out of vehicle expenses. The AO is directed to allow both these expenses. This ground of appeal relating to the above issue is allowed. 6.1. For the purpose of ground relating to deduction under s. 80P(2)(a)(iii), 80P(2)(a)(iv) and 80P(2)(e), it is relevant to take into consideration the observation of the Hon'ble Supreme Court expressed in the case of Broach Dist. Co-op. Cotton Sales, Ginning Pressing Society Ltd vs. CIT (1989) 77 CTR (SC) 70 : (1989) 177 ITR 418 (SC) that while granting deduction under s. 80P, a liberal approach should be adopted. The view of Andhra Pradesh High Court is also relevant inasmuch as eggs were treated as agricultural produce for the purpose of 80P(2)(a)(iii) deduction. [Reference seems to the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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