It carries on business in manufacture and sale of the tea from bought tea leaves and the purchase and supply of agricultural manure to members.
The said view of the ITO was number accepted by the AAC who held that deduction under s. 80P should first be made out of the income and thereafter the losses of the previous year were to be set off.
22nd Jan., 1982 in Tax Case No.
The Kotagiri Industrial Co operative Tea Factory Ltd., respondent hereinafter referred to as the assessee is a companyoperative society.
1972 73 the assessee earned a total income of Rs.
The assessee claimed a deduction of Rs.
BY THE COURT This appeal, by certificate, is directed against the judgment of the Madras High Court dt.
The losses of the earlier year which had been carried forward to the said assessment year were Rs.
85,150.
It is also deriving income from dividend from investments with other companyoperative societies.
85,150.
1,82,744.
The ITO first set off the losses of previous years that had been carried forward against the income and since the losses were in excess of the income, he held that numberdeduction was permissible under s. 80P of the IT Act, 1961 hereinafter referred to as the Act .
In the previous year relevant to the asst.
407 of 1977.
The said decision of the AAC was affirmed in appeal by the Tribunal.
53,386 under s. 80P 2 from the income of Rs.
