M.M.KUMAR, J. - (1.) THIS order shall dispose of IT Ref. Nos. 401 and 402 of 1995, 133 of 1996, and 52 of 1997 as common question of law and facts have been raised. These references have been made under s. 256(1) of the IT Act, 1961 (for short 'the Act').
(2.) FACTS have been taken from IT Ref. Nos. 401 and 402 of 1995.
(3.) THE Income -tax Appellate Tribunal, Amritsar Bench, Amritsar (for short 'the Tribunal'), at the instance of revenue, has referred the following question of law for adjudication of this Court arising out of order passed by it in ITA No. 779/Asr/1994 for the asst. yr. 1990 -91 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the learned first appellate authority granting exemption to the assessee -society under s. 80P(2)(a)(vi) of the IT Act, 1961 - It is appropriate to mention that the Tribunal has accepted the plea of the assessee that the whole of its income was qualified for exemption under s. 80P(2)(a)(vi) of the Act and the purpose of the society was collective disposal of labour for discharge of financial and social interest of the labourers of the area who have been the member of the society. Therefore, it has been found that all the conditions laid down under s. 80P(2)(a)(vi) of the Act were fulfilled and the income of the society was fully exempted from tax. It is also worth mentioning that the accounts of the assessee -society have been audited and the voting right was restricted to the members alone. The report of the auditors have also been placed on record. The only contention raised by the counsel for the Revenue is that as the condition laid down, for claiming deduction under s. 80P(2)(a)(vi) of the Act, were not complied with in the present case, the assessee was not entitled to the deduction.;