I.T.A. No. 488/KOL/2009, (Assessment Year: 2005-2006). Case: Bardhaman Cooperative Milk Producers Union Ltd. Vs Assistant Commissioner of Income Tax. ITAT (Income Tax Appellate Tribunal)
| Case Number | I.T.A. No. 488/KOL/2009, (Assessment Year: 2005-2006) |
| Counsel | For Appellant: Soumitra Choudhury, Advocate and For Respondents: Prakash Nath Barnwal, J.C.I.T., Sr. D.R. |
| Judges | P.K. Bansal, Member (A) and Mahavir Singh, Member (J) |
| Issue | Income Tax Act |
| Judgement Date | April 09, 2015 |
| Court | ITAT (Income Tax Appellate Tribunal) |
Order:
P.K. Bansal, Member (A), (ITAT Kolkata 'A' Bench)
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This appeal has been filed by the assessee against the order of ld. Commissioner of Income Tax (Appeals), Asansol in Appeal No. 138/CIT(A)/Asl/Erst. Bwn/Cir.1/2007-08 dated 05.01.2009 for the assessment year 2005-06.
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The only issue involved in this appeal relates to the claim of deduction by the assessee under section 80P(2)(b) amounting to Rs. 6,47,955/-, which was disallowed by the Assessing Officer but sustained by the ld. CIT(Appeals). This issue, in our opinion, is in no more res-integra.
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Brief facts of the case are that the assessee, a Cooperative Society, is a Central/Apex/Federal Cooperative Milk producers' Union within the area of Burdwan District and was registered with the Additional Registrar of Cooperative Societies, West Bengal on 10.06.1993. The main object of the Society is to carry out activities conducive to the economic and socio-economic development of the milk producers by organizing effective production, processing and marketing of commodities. According to its by-laws, only any registered Primary Milk Producers' Cooperative Society under the jurisdiction of the assessee and supplying milk to the assessee is entitled to hold its membership. As per the audit report of the assessee-Society, primary milk producers' Cooperative Societies are affiliated to the assessee-Society which is a Central/Federal Society. The management of the Society was vested on a Board of Directors consisting of nominees from the primary societies organized by it during the year. The assessee-Society collects milk from its members, i.e. the primary milk producers' cooperative societies and supplies the same to different concerns in the State. The payments collected by the assessee from these concerns are then chanalised to the member primary societies and ultimately to the farmers. The assessee claimed deduction under section 80P(2)(b) which includes a sum of Rs. 6,47,955/-, remaining part of the assessee's income from its trading of milk. The Assessing Officer was of the view that since the assessee is not a primary cooperative society engaged in supplying milk as required under the provisions of section 80P(2)(b), the assessee is not entitled for deduction and accordingly he disallowed the deduction to the assessee. The assessee went in appeal before the ld. CIT(Appeals), who sustained the addition.
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Before us, ld. A.R. vehemently relied on the order of the Assessing Officer...
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