Masinan Samabay Krishi Unnayan Samity Ltd.

Parties Involved

Facts Summary

The assessee, Masinan Samabay Krishi Unnayan Samity Ltd., is a Primary Agricultural Credit Cooperative Society registered under the West Bengal Cooperative Society Act. Its main activities include the purchase and sale of agricultural implements, rural banking, and providing credit facilities to its members, who are primarily farmers. For the assessment year 2018-19, the assessee claimed a profit of Rs.19,15,024/- from these activities, which was subject to a 100% deduction under section 80P of the Act, resulting in a NIL total income. However, the deduction was inadvertently claimed under section 80P(2)(C)(1) instead of the correct sections 80P(2)(a)(i) and 80P(2)(a)(iv). Consequently, the Assessing Officer disallowed Rs.18,15,024/- and charged tax of Rs.6,69,570/-. The assessee filed a rectification petition under section 154, which was dismissed. Aggrieved, the assessee appealed to the CIT(Appeals), whose order was also unfavorable. The assessee then approached the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the disallowance of Rs.18,15,024/- on account of an inadvertent deduction claim under section 80P(2)(c)(i) instead of the correct sections is justifiable.
• 2. Whether the matter should be remitted back to the CIT(Appeals) for a fresh examination on merit.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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