COMMISSIONER OF INCOME TAX vs. SURAT DIST. CO.OP.MILK PRODUCERS

ITR/53/1984HC GujaratGJHC24011728198430 January 1997Author: HONOURABLE MR. JUSTICE R.K.ABICHANDANI,HONOURABLE MR. JUSTICE R.BALIA2 pages
AI SummaryRemanded

What were the facts?

The assessee is Surat Dist. Co.op. Milk Producers. The revenue is the Commissioner of Income Tax. The assessment year in question is 1978-79. The order under challenge is the Income Tax Appellate Tribunal's decision allowing relief under Section 80P(2)(d). The Income Tax Officer (ITO) had disallowed the claim for exemption of Rs. 2,08,411/- being gross interest received from other co-operative societies. The CIT (Appeals) confirmed the ITO's order. The Tribunal, following its earlier decision for assessment years 1977-78 and 1978-79, ruled in favour of the assessee. A previous reference to the High Court for assessment year 1976-77 on the same point was left unanswered, with directions to the Tribunal to decide on merits.

What did the High Court hold?

The High Court, in this reference, did not decide the question on merits. It noted that a previous reference by the Tribunal on the same point for assessment year 1976-77 was left unanswered by this Court in CIT Vs. Surat District Co-operative Milk Producers' Union Ltd., reported in 211 ITR 726. In that prior decision, the Tribunal was directed to decide the question on merits after considering the relevant facts and the law laid down by the Supreme Court in Cambay Electric Supply Industrial Co.Ltd. Vs. CIT (113 ITR 84) and Distributors (Baroda) Pvt.Ltd. Vs. Union of India (155 ITR 120). Following that precedent, the present reference is also left unanswered, leaving it open for the Tribunal to decide the question on merits, considering the relevant facts in light of the Supreme Court's decisions and the earlier High Court ruling in the assessee's own case. The reference is disposed of accordingly.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee was eligible for relief under Section 80P(2)(d) of Rs. 2,08,411/- being gross interest received from other co-operative societies notwithstanding the fact that the interest account showed a net deficit? Assessee's contention: The assessee claimed eligibility for relief under Section 80P(2)(d) on the gross interest received from other co-operative societies. Revenue's contention: The revenue contended that the assessee was not eligible for the relief because the interest account showed a net deficit. The revenue relied on the fact that the gross interest received was offset by interest paid or other expenses, leading to a net deficit in the interest account.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 53 of 1984

For Approval and Signature:

Hon'ble MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE R.BALIA. ============================================================ 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.

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