COMM. OF INCOEM TAX-I, JALANDHAR vs. M/S DOABA CO-OPERATIVE SUGAR MILLS LTD

ITA/847/2010HC Punjab & HaryanaPHHC01093823201024 February 2011Author: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE AJAY KUMAR MITTAL2 pages
AI SummaryDismissed

What were the facts?

The Revenue, Commissioner of Income Tax, filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Amritsar. The appeal pertains to the assessment year 1998-99 and challenges the ITAT's decision regarding a co-operative society engaged in manufacturing and selling sugar. The specific issue revolves around whether the society qualifies for a deduction under Section 80-P(2)(a)(iii) of the Act. The High Court of Punjab and Haryana is hearing the appeal.

What did the High Court hold?

The High Court held that the appeal is covered against the revenue by its own judgment in The Budhewal Co-operative Sugar Ltd. v. CIT 225 CTR 261. Consequently, the appeal filed by the revenue was dismissed. The reasoning is that the present case is on similar facts and legal grounds as the precedent case, which was decided against the revenue. The High Court did not independently analyze the issues but relied on the earlier binding precedent. The operative direction was the dismissal of the appeal. No issue was expressly left undecided.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the ITAT is right in law in expressing a plain divergence from the earlier view held by the Divisional Bench of the jurisdictional High Court in Karnal Co-operative Sugar Mills Ltd. (2001) 253 ITR 659 (P&H) as held in the case of The Budhewal Co-operative Sugar Ltd. Vs CIT 225 CTR 261 (P&H)? (Question of law) 2. Whether on the facts and in the circumstances and in law, a co-operative society, engaged in the business of manufacturing and sale of sugar out of sugarcane can be said to be engaged in the marketing of the agricultural produce of its members within the meaning of section 80-P(2)(a)(iii) of the Income Tax Act, 1961? (Question of mixed law and fact) Contentions: Assessee: Not recorded. Revenue: The revenue's counsel fairly stated that the matter is covered against the revenue by the High Court's judgment in The Budhewal Co-operative Sugar Ltd. v. CIT 225 CTR 261.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 80-P(2)(a)(iii)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.

Date of decision: 24.2.2011 Commissioner of Income Tax -----Appellant. Vs. M/s Doaba Co-operative Sugar Mills Ltd. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Vivek Sethi, Standing Counsel for the appellant. --- ADARSH KUMAR GOEL, J. This appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order of the Income Tax Appellate Tribunal, Amritsar in I.T.A. No.503/(ASR/2000 for the assessment year 1998-99 proposing following substantial questions of law:- “I. Whether on the facts and in the circumstances of the case, the ITAT is right in law in expressing the plain divergence from the earlier view held by the Divisional Bench of the juri ictional High Court in Karnal Co- operative Sugar Mills Ltd. (2001) 253 ITR 659 (P&H) as held in the case of the The Budhewal Co-operative Sugar Ltd. Vs CIT 225 CTR 261 (P&H)? II. Whether on the facts and in the circumstances and in law, a co-operative society, engaged in the business of manufacturing and sal

The order continues below.

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