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2013 (10) TMI 1168 - HC - Income TaxReopening of finalized assessment u/s 147 after retrospective amendment to Section 80P - Exemption in respect of income earned on the sale of liquor in the hands of Co-operative society - Held that:- From the decisions of the Hon'ble Supreme Court and the discussions made therein, it is apparent that the amendment which was brought in 1999 has became as the Income-tax (Second Amendment) Act, 1999 (Act 11 of 1999), and on recording the submission made by the Solicitor General before the Delhi High Court when the amendment was impugned, it was made clear that the amendments would apply to the assessments which were yet to be finalized - In the present case, the assessments were of the year 1997, 1998 and 1999 and, admittedly the assessments were finalised in 1999 and it were reopened by issuing notice dated January 17, 2003, under section 148 of the Act. Therefore, the present case falls within the assessments finalised before the amendment and no doubt the assessee is entitled for deduction – Decided in favor of Assessee. Deduction in respect of interest income - Held that:- the deduction claimed in respect of sale of liquor does not fall under the categories stipulated in section 80P(2) of the Act and, therefore, the Tribunal has rightly rejected the claim of the assessee with regard to the sale of liquor. - Decided against the assessee. Deduction in respect of income from consumer goods sales and the income from liquor sales – Held that:- The Tribunal without assigning any reason has just upheld the order of the authorities. When it is not in dispute that the agricultural produce are grown by its members and fall within the category (iii) of section 80P(2) and, moreover, the goods are meant for public distribution we have been left with no other option than to set aside the order of the authorities as well as the Tribunal on this score. – Decided against the Assessee.
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