Law:

Section:

Section 80P, read with section 14A, of the Income-tax Act, 1961 - Deductions - Income of co-operative societies - Assessee, a co-operative society, claimed relief under section 80P in respect of its income earned from entire business - ITO, however, on basis of details furnished by assessee, restricted relief to income earned by it from business with members only - Assessee contended that it was earning income from various activities and expenditure incurred was indivisible - Whether since assessee had separately given working of income earned in dealing with members, it showed that business of assessee was divisible and profits and gains from activities referred to in section 80P(2) could be shown separately - Held, yes - Whether, therefore, assessee was entitled to benefit of section 80P(2) only in respect of income earned from marketing of agricultural produce of its members - Held, yes FACTS The assessee, a co-operative society, claimed relief under section 80P(2) in respect of its income from the business done with the members of society as well as with non-members. The ITO, however, asked it to furnish the working of net income from the business done with its members only which the assessee furnished accordingly. It, however, contended that it was earning income from various activities and the expenditure was indivisible. The ITO did not accept that explanation and restricted the amount of benefit under section 80P(2) to the income earned from dealings with members. On appeal, the Commissioner (Appeals) allowed the claim of the assessee and directed the ITO to allow the entire expenditure incurred on activities with members and non-members for earning income under section 80P(2). On further appeal, the Tribunal upheld the decision of the Commissioner (Appeals). On reference : HELD In the instant case, since the assessee itself had given the working of profit earned and restricted its income to the tune of Rs. 76,723, from the activity, i.e., marketing of agricultural produce grown by its members, there was no need to go into the question what type of expenditure should be allowed and what expenditure was related to the taxable income of the assessee. The…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492