INCOME TAX OFFICER Vs. RANIA CO OPERATIVE MARKETING CUM PROCESSING SOCIETY LTD
INCOME TAX APPELLATE TRIBUNAL
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T.V. Rajagopala Rao, Judicial Member -
(1.) THIS is a revenue's appeal against the order dated 14-1-1981 passed by the Commissioner (Appeals), Chandigarh, in Appeal No. 412 (Coys. Trust, Rtk.) of 1980-81.
(2.) The only point which emanated from all the four grounds mentioned in the appeal is that the orders of the Commissioner (Appeals) granting a relief of Rs. 1,56,448 to the assessee's society under Section 80P(2)(a)(iv) of the Income-tax Act, 1961 ('the Act') after setting aside the assessment order of the ITO dated 19-9-1980 denying the said relief to the assessee's society is not correct under law.
The assessee is a co-operative society and for the assessment year 1977-78 for which the previous year ended on 30-6-1976, it had earned income from purchase and sale of foodgrains and commission from distribution of fertilisers. For the sake of brevity the assessee is called 'society' in the rest of this order. The society filed its income-tax return on 14-10-1977 declaring an income of Rs. 7,310. After verifying the accounts of the society wherein the ITO have found out some defects he proposed to make an addition of Rs. 1,61,537 to the returned income and therefore he forwarded the draft order to the society on 7-6-1980.
The ITO received the directions from the IAC, Rohtak Range, Rohtak, in his letter No. JB/144B/155/1979-80/3396 dated 1-9-1980. In pursuance of those directions and after giving one more opportunity to the society of being heard on 18-9-1980, the ITO computed the taxable income of the society at Rs. 1,65,800 under his assessment dated 19-9-1980 and completed the assessment under Section 144B/143(3) of the Act.
(3.) DURING the course of the assessment proceedings the society claimed that an income of Rs. 1,61,537 is exempt from tax under Section 80P(2)(a)(iv). The break-up of the figure claimed on exemption is arrived at as follows :
The proportionate income on sale of fertilisers to the members of Rs. 76,84,835 was claimed as Rs. 1,61,537.;
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