COMMISSIONER OF INCOME TAX AMRITSAR Vs. J AND K COOPERATIVE SUPPLY AND MARKETING SRINAGAR

JUDGEMENT

(1.) By this reference under section 256(1) of the Income-tax Act, 1961 ( Act ), at the instance of the revenue, the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar ( Tribunal ) has referred the following question of law to this Court for opinion:

(2.) The assessee is a co-operative society. It was appointed by the Government of Jammu and Kashmir its sole agent for the import and distribution of chemical fertilizers allotted to it by the Central Government or purchased by it from the approved manufacturers. Under the terms of the agreement dated 19th February, 1967 entered into between the assessee- society and the Government of Jammu and Kashmir, the assessee- society was to receive commission-cum-incidental charges on account of freight, handling and other charges on fertilizers to be shifted from rail head up to the distribution centres etc. In its assessment for the assessment year 1974-75, the assessee claimed deduction under section 80P of the Income-tax Act, 1961 ( Act ) in respect of the profits from the above activity. The Income-tax Officer did not allow the claim of the assessee as he was of the opinion that the income of the assessee from handling of the fertilizers was not covered by section 80P(2)(e) of the Act. The assessee appealed to the Commissioner of Income- tax (Appeals). The Commissioner (Appeals) accepted the claim of the assessee for deduction under section 80P(2)(e) of the Act in view of the decision of the Income-tax Appellate Tribunal in the assessee s own appeals in respect of assessment years 1967-68 and 1968-69. Revenue s appeal to the Income-tax Appellate Tribunal against the above order of the Commissioner (Appeals) was rejected by the Tribunal by following its decision in the assessee s own case in respect of earlier assessment years. Hence this reference at the instance of the revenue.

(3.) We have heard Mr. Anil Bhan, learned counsel for the revenue and perused the facts of the case.We find that identical question of law arising out of the order of the Tribunal, referred to this Court by the Tribunal in the assessee s own case for the assessment years 1967-68 and 1968-69, has already been decided by this Court .The said decision is reported in (1993) 204 ITR 289 ( CIT v J. K. Co-op. Supply & Mktg. Fedn.). In that case, this Court, on perusal of the various terms and conditions of the agreement dated 19th February, 1967, observed as follows: