Satish Kumar Mittal, J. - (1.) THE assessee has filed this appeal under Section 260A of the Income Tax Act, 1961 ('the Act') against the order dated 13 -9 -2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A' in ITA No. 739/Chandi./2001 for the assessment year 1991 -92.
(2.) THE brief facts of the case are that the assessee is a Co -operative Society at the apex level in the State of Punjab. The assessee had filed the return of income for the assessment year 1991 -92 claiming exemption under Section 80P(2)(a)(iii) and under Section 80P(2)(a)(iv) of the Act to the tune of Rs. 57,05,31,469. The assessment was framed under Section 143(3) of the Act vide order dated 16 -12 -1993 and the deduction was allowed to the assessee in accordance with the view expressed by this Court in case of CIT v. . Later on, the decision of this Court, was reversed by the Supreme Court in case of Assam Cooperative Apex Marketing Society Ltd. v. : [1993]201ITR338(SC) , whereunder it was held that deduction under Section 80(P)(2)(iii) is to be allowed only to those co -operative societies whose membership consists of agriculturists. Subsequently on the basis of the said judgment, the case of the assessee for the assessment year in question was re -opened by the Assessing Officer by issuing notice under Section 148 of the Act. The Assessing Officer was also of the view that as per the judgment of the Supreme Court in Assam Co -op. Apex Marketing Society Ltd.'s case (supra), the assessee was not entitled to deduction under Section 80P(2)(a)(iv), though the said judgment dealt with only the deduction under Section 80P(2)(a)(iii) of the Act. In response to the notice under Section 148 of the Act, the assessee filed the return of its income on 11 -4 -1996. The Assessing Officer vide order dated 30 -3 -1998, on the basis of the aforesaid judgment, denied the deductions claimed by the assessee under Section 80P(2)(a)(iii) and 80P(2)(a)(iv) of the Act amounting to Rs. 50,16,08,596 and Rs. 6,85,05,352 respectively. Feeling aggrieved against the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who vide his order dated 2 -3 -2001 upheld the disallowance of deduction under Section 80P(2)(a)(iii) on the basis of the judgment in Assam Co -op. Apex Marketing Society Ltd.'s case (supra), but allowed the claim of deduction under Section 80P(2)(a)(iv) while holding that the aforesaid judgment was not applicable to this clause.
(3.) AGAINST the order of the Commissioner of Income Tax (Appeals), the assessee went in appeal before the Tribunal. In the meanwhile, the judgment of the Supreme Court in Assam Co -op. Apex Marketing Society Ltd.'s case (supra), was overruled by the Larger Bench of the Supreme Court itself in case of Kerala State Co -op. Marketing Federation Ltd. v. : [1998]231ITR814(SC) vide its judgment dated 30 -5 -1998 in which it was held that deduction under Section 80P(2)(a)(iii) of the Act is admissible to a Co -operative Society irrespective of whether the agricultural produce marketed by the Society was produced by its members or not. It is relevant to state here that after this judgment of the Supreme Court, the provision of Section 80P(2)(a)(iii) was amended retrospectively with effect from 1 -4 -1968 vide Income Tax (Second Amendment) Act, 1998 providing that deduction under the aforesaid clause will be admissible to a Co -operative Society only if the agricultural produce marketed by the Society is grown by its members.;