COMMISSIONER OF INCOME TAX Vs. LAKDHADWEEP CO OPERATIVE MARKETING FEDERATION LTD
LAWS(KER)-2003-3-55
HIGH COURT OF KERALA
Decided on March 26,2003

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Lakdhadweep Co Operative Marketing Federation Ltd Respondents

JUDGEMENT

G.SIVARAJAN, J. - (1.) THIS is an appeal filed by the Commissioner, Calicut against the order of the Income Tax Appellate Tribunal, Cochin Bench in ITA No. 142/Coch/95 in respect of the assessment year 1987 -88, raising the following two questions of law: '1. Whether, on the facts and in the circumstances of the case and also in the light of the amendment to section 80P(2)(a)(iii) with effect from 1 -4 -1968 (following sub -clause was substituted for sub -clause (iii) with effect from 1 -4 -1968, 'the marketing of agricultural produce grown by its members, or') the assessee is entitled to the deduction benefit of section 80P(2)(a)(iii) of the Income Tax Act' 2. Whether, on the facts and in the circumstances of the case and also in the light of the amendment with retrospective effect, the Tribunal is right in law in interfering with the revisional order of the Commissioner ?'
(2.) IN fact, the Tribunal had disposed of four appeals filed by the respondent herein in respect of the assessment years 1982 -83, 1987 -88, 1988 -89 and 1989 -90 by a common order. Three other appeals filed by the revenue against the said common order were disposed of by this court by separate judgments. ITA No. 94 of 1999 arising out of ITA No. 145/Coch./95 was disposed of by judgment dated 7 -9 -2001 in the light of the amendment brought out to section 80P(2)(a)(iii) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') with retrospective effect from 1 -4 -1968 by the Income Tax (Second Amendment) Act, 1998. The question of law formulated by the revenue were answered in favour of the revenue on the ground that since the member societies have not grown the agricultural produce marketed by the apex society, viz., the assessee, it cannot claim deduction in respect of the marketing of the agricultural produce in terms of section 80P(2)(a)(iii) of the Act. In the light of the said decision, the two questions raised by the assessee have to be answered in favour of the revenue and against the assessee. Accordingly, we answer the two questions in favour of the revenue and against the assessee.
(3.) THE appeal is allowed as above.;


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