M/S.K.K.142 POTTANERI PACCS vs. INCOME TAX OFFICER.

TCA.No.639 of 2019 In the High Court of Judicature at Madras Dated : 30.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.639 of 2019 M/s.K.K.142 Pottaneri, PACCS Ltd., Salem-636453.

...Appellant

Vs The Income Tax Officer, Ward 2(4), Salem-7. ...Respondent APPEAL under Section 260-A of the Income Tax Act, 1961 against the order dated 31.8.2018 made in MP.No.92/Chny/2018 in ITA.No.2607/Chny/ 2017 on the file of the Income Tax Appellate Tribunal Chennai 'C' Bench for the assessment year 2014-15. For Appellant : Mr.T.Ramesh For Respondent: Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa Judgment was delivered by T.S.Sivagnanam,J This appeal, filed by the assessee under Section 260A of the Income Tax Act, 1961 (for brevity, the Act) is directed against the order dated 1/4 http://www.judis.nic.in TCA.No.639 of 2019 31.8.2018 made in MP.No.92/Chny/2018 in ITA.No.2607/Chny/2017 on the file of the Income Tax Appellate Tribunal Chennai 'C' Bench for the assessment year 2014-15. 2. The assessee has filed this appeal by raising the following substantial questions of law: “i. In the facts and circumstances of the case, where the appellant is admittedly a primary agricultural cooperative credit society, registered under the Tamil Nadu Cooperative Societies Act, whether the Appellate Tribunal is correct in rejecting the deduction claimed by the appellant under Section 80P(2)(a)(i) of the Income Tax Act ? ii. Whether the Tribunal is correct in differentiating between Class A members and Class B members for the purpose of claiming deduction under Section 80P(2)(a)(i) of the Income Tax Act in the absence of any such discrimination under the said Section 80P(2)(a)(i) of the Income Tax Act? iii. In the facts and circumstances of the case, where Section 80P(2)(a)(i) refers to the members and there is no reference to different kinds of members, whether the Tribunal is correct in holding that deduction under Section 80P(2)(a)(i) is applicable only when there is a transaction between the appellant society and the Class a members ? 2/4 http://www.judis.nic.in TCA.No.639 of 2019 iv. Whether the Tribunal is correct in traversing beyond this scope of the proceedings and allowing the appeal of the Department on entirely a new ground ? v. In the facts and circumstances, whether the re-assessment under Section 143(3) of the Income Tax Act initiated on change of opinion is permissible under the Act ? vi. Whether the Tribunal is correct in rejecting the application for rectification of mistake filed under Section 254(2) of the Income Tax Act, 1961?” 3. We have heard Mr.T.Ramesh, learned counsel for the appellant – assessee and Mr.M.Swaminathan, learned Senior Standing Counsel, assisted by Ms.V.Pushpa, learned Standing Counsel accepting notice for the respondent – Department. 4. As against the main order passed by the Tribunal, the assessee filed TCA.No.638 of 2019, which was allowed by this Court by judgment dated 29.8.2019. In the light of the same, no judgment is required in this appeal. 5. Hence, the above tax case appeal is closed. No costs.

30.8.2019 Internet : Yes 3/4 http://www.judis.nic.in TCA.No.639 of 2019 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN, J RS To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Income Tax Officer, Ward 2(4), Salem-7. TCA.No.639 of 2019 30.8.2019 4/4 http://www.judis.nic.in