Arijit Pasayat, J. - (1.) Leave granted.
(2.) In the instant appeal, challenge is to the judgment of a Division Bench of the Madras High Court dismissing the appeals filed under Section 260A of the Income Tax Act, 1961 (in short Rs. the Act). The issue related to the claim of deduction made by the respondent under Section 80P(2)(a)(i) of the Act. The assessing officer negatived the claim on the ground that the income reflected by the assessee can neither be attributed to actual labour of the members nor can be treated as arising out of collective disposal of its labour. The Commissioner of Income Tax (Appeals) following the earlier orders, allowed the appeal. The Revenue filed appeals before the Income Tax Appellate Tribunal, Chennai-Rs. A Bench (in short the Rs. Tribunal) which dismissed the appeals.
(3.) Learned Counsel for the appellant submitted that the assessing officer had rightly observed that the claim of deduction in terms of Section 80P(a)(i) is not allowable. Unfortunately, the Commissioner (Appeals) and the Tribunal held otherwise. The High Court failed to notice that the profit earned by the Society in executing the work was retained by the members themselves.;