R.K.Agarwal, J. - (1.) The Income-tax Appellate Tribunal, Delhi, has referred the following question of law Under Section 256(1) of the Income-tax Act, 1961, (hereinafter referred to as "the Act"), for the opinion of this court. "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in holding that the income of the assessee-co-operative society from a cold storage was exempt under the provisions of Section 80P(2)(e) of the Income-tax Act, 1961 ?"
(2.) Briefly stated the facts giving rise to the present reference are as follows : The respondent, namely, M/s. District Co-operative Federation, Bulandshar, is a cooperative society. The present reference relates to the year 1979-80. It had originally filed the return on June 28, 1979, showing a total income of Rs. 73,630. However, it revised its return on February 16, 1982, showing a total loss of Rs. 1,02,240. In the course of assessment proceedings it also filed a letter dated November 29, 1982, claiming deduction of Rs. 24,960 Under Section 80P(2)(a)(ii) in respect of brick kiln business claiming it to be a cottage industry thereby increasing the returned loss to Rs. 1,27,200. It may be mentioned here that along with the revised return the respondent had filed a letter claiming deduction Under Section 80P(2)(e) of the Act in respect of the income of the cold storage owned by it. The Income-tax Officer did not allow exemption Under Section 80P(2)(e) of the Act to the respondent on the income from the cold storage. Feeling aggrieved, the respondent preferred an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) had upheld the claim made by the respondent and directed that the deduction be allowed Under Section 80P(2)(e) of the Act in respect of the income from the running of the cold storage. The Revenue's appeal before the Tribunal has failed.
(3.) We have heard Sri A. N. Mahajan, learned standing counsel for the Revenue, and Sri Vikram Gulati, learned counsel for the respondent.;