Case Law Details
Malwa Coop. L & C Society Ltd Vs ITO (ITAT Amritsar)
In its fact, that the gross receipt should be determined by allowing the reasonable deduction of the items like TDS, VAT, security letter cess and other deduction. Accordingly, the assessee made a correct calculation related to calculation of the contract receipt. Both the Revenue authorities cannot go beyond the jurisdiction of all the orders of Hon’ble ITAT. Hon’ble ITAT directed denavo assessment it does not mean that the essence of the judgment should be avoided in any means. For, the deduction u/s 80P(2)(a)(vi) of the Act the assessee is eligible. Respectful observation of the order of Punjab & Haryana High Court in the case of CIT v. Gurdaspur Hardochhenni Coop. L/C Society [2008] 303 ITR 145 (P&H). The observation of the Hon’ble Court is extracted as follows:
“5. After hearing learned counsel for the parties, we are of the considered view that once it had been found as a fact, on the strength of the report of auditors on record, that the assessee-society is a registered society and its purpose is of collective disposal of labour for discharge of financial and social interests of the labourers of the particular area who are its members, the Tribunal was not wrong in allowing the deduction as contemplated under section 80P(2)(a)(vi) of the Act to the assessee. No question has been claimed on perversity of findings of fact.”
Accordingly, the gross receipt of the assessee is restricted amount to Rs.69,02,988/-. There is no change in the profit percentage. Accordingly, the assessee is eligible u/s 80P(2)(a)(vi) of the Act.
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