COMMISSIONER OF INCOME-TAX vs. A'BAD MASKATI CLOTH DEALERS COOP SHOPS & WAREHOUSE SOC LTD

ITR/54/1985HC GujaratGJHC24012186198530 August 2000Author: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE D.M.DHARMADHIKARI,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
AI SummaryDismissed

What were the facts?

This case involves an Income Tax Reference before the High Court of Gujarat. The petitioner is the Commissioner of Income-tax, and the respondent is A'bad Maskati Cloth Dealers Coop Shops & Warehouse Soc Ltd. The reference pertains to the assessment year(s) not explicitly stated in the judgment. The core of the dispute revolves around the Income-Tax Appellate Tribunal's decision concerning the exemption of income derived by the assessee society from letting out shops to its members. The Tribunal held this income to be exempt under Section 80P(2)(e) of the Income-Tax Act, 1961. The Commissioner of Income-tax has challenged this finding.

What did the High Court hold?

The High Court held that the question referred to it is squarely covered by the decision in the assessee's own case, CIT vs. The Ahmedabad Maskati Cloth Dealers Co.Op.Shops & Warehouse Society Ltd., Ahmedabad (1986) 162 ITR 142. Consequently, the question is answered against the assessee. The Tribunal's finding that the income derived by the assessee society from letting out shops to its members is exempt under Section 80P(2)(e) of the Income-Tax Act, 1961, is thus overturned. The High Court did not decide on any other issues, as only one question was referred. The operative direction is that the question is answered against the assessee, implying the exemption is not available. There shall be no order as to costs.

What were the issues?

The sole question referred to the High Court for decision is: 1. Whether, on the facts and in the circumstances of the case, the Income-Tax Appellate Tribunal is right in holding that the income derived by the assessee society from letting out the shops to the licence members who were carrying on business in cloth is clearly exempted under the provisions of sec. 80P(2)(e) of the Income-Tax Act, 1961? The Revenue's contention, as implied by the reference, is that the Tribunal erred in granting the exemption under Section 80P(2)(e). The judgment does not record specific arguments from the assessee's side, but it refers to the Tribunal's finding as the basis for the reference. The Revenue relies on the fact that the question is covered by a previous decision in the assessee's own case.

Which sections of the Income-tax Act were involved?

Section 80P(2)(e)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 54 of 1985

For Approval and Signature:

Hon'ble CHIEF JUSTICE MR DM DHARMADHIKARI and Hon'ble MR.JUSTICE A.R.DAVE

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge? : NO

The order continues below.

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