Pioneer Co-Operative Car Parking ... vs Department Of Income Tax on 21 October, 2011
Even otherwise also, the decision
of the Tribunal in the case of Assessing Officer vs. Ganesh Co-operative (L&C) Society
Ltd. (supra) is not applicable to the facts and circumstances of the assessee's case. In
that case the Tribunal held the deduction u/s. 80P(2)(a)(vi) not allowable on the
reasonings that the bye-laws of the co-operative society laying down rules for
membership and voting rights violated proviso to sec. 80P(2)(a)(vi) and further the
major contribution of individual labour to contract work undertaken by the society was
from non-members. But so far as the case of the assessee is concerned, the department
could not establish any violation of bye-laws and further we have already held that core
activity of the assessee-society has been performed by the members of the society
without engagement of outsiders. In that view of the matter the aforesaid decision of
the Tribunal is also not applicable to the facts of the assessee's case.
6.5. In view of the above facts and circumstances of the case, we are of the
considered opinion that the ld. C.I.T.(A) has dealt with each and every objection raised
by the A.O. and thus correctly directed him to take the status of the assessee as co-
operative society and to allow deduction u/s. 80P(2)(a)(vi) of the Act, as claimed by the
assessee. We uphold his order on this issue and the ground of appeal of the department
is dismissed.