District Co-operative Sugar Cane Supply Ltd Vs ITO (ITAT Lucknow)
ITAT Lucknow held that part of commission income from sugar mills cannot be taxed since other part of commission income has already been allowed for deduction under section 80P of the Income Tax Act. Accordingly, addition of part of commission income set aside and appeal allowed.
Facts- AO observed that as per Form 26AS, the assessee had earned commission at Rs.1,13,49,264/- and claimed credit of tax deducted at source (TDS) of Rs.11,34,972/- on such commission income but the assessee had offered for taxes a sum of Rs.60,79,500/- and balance commission of Rs.52,66,764/- was categorized in the balance-sheet as under the head other receivable from the sugar mills. Therefore, treating it as mistake apparent on record, the Assessing Officer re-computed the income of the assessee and made impugned addition of Rs.52,66,764/-.
CIT(A) sustained the addition and dismissed the appeal of the assessee. Now, the assessee is in appeal before this Tribunal.
Conclusion- The Hon’ble Jurisdictional High Court rendered in the case of CIT vs Zila Sahkari Bank Ltd reported in (2014) 45 Taxmann.com 438 (Alld) has held that on perusal of the record, it appears that the assessee is enjoying benefit of Section 80P of the Act and as such the tax on an income is exempted. Even if, addition was sustained, there will be no tax demand and tax effect will be nil.
