COMMISSIONER OF INCOME-TAX vs. AHMEDABAD MASKATI CLOTH DELAERS COMPANY

ITR/217/1984HC GujaratGJHC24011891198409 February 1999Author: HONOURABLE DR. JUSTICE J.N.BHATT,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
AI SummaryDismissed

What were the facts?

The assessee, Ahmedabad Maskati Cloth Dealers Company, a co-operative society, claimed exemption under Section 80P(2)(e) of the Income Tax Act, 1961, for Assessment Years 1978-79 and 1979-80. The Income Tax Officer rejected this claim for both years. The Appellate Assistant Commissioner, however, allowed the exemption, relying on a previous Tribunal decision for the same assessee for Assessment Year 1970-71. The Income Tax Appellate Tribunal confirmed the order of the Appellate Assistant Commissioner. The Commissioner of Income-tax referred a common question of law arising from these orders to the High Court.

What did the High Court hold?

The High Court held that the Income-tax Appellate Tribunal was not right in law in holding that the income of the assessee is exempt under Section 80P(2)(e) of the Income Tax Act, 1961. The Court's decision was based on the ratio propounded in their earlier judgment in Commissioner of Income Tax v. Ahmedabad Maskati Cloth Dealers Co-operative Society Limited, 162 ITR 142. In that prior decision, the High Court had decided the same question, concerning the same assessee and for previous assessment years, against the assessee. The Court found itself in broad agreement with the reasoning in the earlier decision and did not propose to reiterate it. Therefore, the question referred was answered in the negative, in favour of the revenue and against the assessee. The reference stood disposed of without costs.

What were the issues?

1. Whether the Income-tax Appellate Tribunal has been right in law in holding that the income of the assessee is exempt u/s. 80P(2)(e) of the I.T. Act, 1961? (Question of law) Assessee's Contention: The assessee, a co-operative society, claimed exemption under Section 80P(2)(e) for the assessment years 1978-79 and 1979-80. The Appellate Assistant Commissioner and the Tribunal accepted this claim. Revenue's Contention: The revenue contended that the exemption under Section 80P(2)(e) was not applicable. The High Court noted that the present reference would not detain them longer in view of their own prior decision in Commissioner of Income Tax v. Ahmedabad Maskati Cloth Dealers Co-operative Society Limited, 162 ITR 142, which dealt with the same question for the same assessee for previous years and was decided against the assessee.

Which sections of the Income-tax Act were involved?

Section 256(1),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 217 of 1984

For Approval and Signature:

Hon'ble MR.JUSTICE J.N.BHATT and MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed to see the judgements?

2.

To be referred to the Reporter or not?

3.

Whether Their Lordships wish to see the fair copy of the judgement?

4.

Whether this case involves a substantial question 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?

-----

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 256(1)

All 755 judgments and leading authorities on Section 256(1) →

Recent GST High Court judgments

Search GST case law →