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2014 (12) TMI 766 - HC - Income TaxCo-operative society claiming exemption - Effect on Notification issued under old act, on the enactment of new Act – Notification No. SRO/992 dated 22.12.1950 will remain applicable or not - Whether the Tribunal is right in holding that 'Notification No. SRO/992 dated 22.12.1950 of the old Act, 1922 was not withdrawn and, therefore, it provided a good basis to the Co-operative Society to seek exemption of its income from business - Held that:- Assessee is a co-operative society and was assessed by the Income-tax Officer in the status of A.O.P – assessee prayed that its income was exempt under notification issued in 1950. -The Income-tax officer agreed that the income of the assessee was exempted under certain notifications issued in 1950 – CIT was of the view that the income of the assessee was not entirely exempt in accordance with the I.T. Act, 1961 but that it was entitled to certain exemptions governed by section 80P of the I.T. Act. Assessee contended that its income was exempt as per notification No. SRO/998 dated 22.12.1950 which was though issued under the Act of 1922 but was not withdrawn - the Tribunal had taken a view that the income of a Coop. Society was exempt but that decision was not accepted by the department and a reference was filed u/s. 256(2) of the Act, 1961 – revenue contented that it is well settled principle of law that once the new Act comes, unless there is specific mention in the earlier Act and the notifications issued therein cannot be made applicable - under the new Act, the notification issued under the earlier Act stood repealed and the present case will be governed by Sections 80P and 80T of the Act - since the basis of the assessment order was erroneous, notice under Section 263 is justified - the old notification could not have been relied by the Appellate Tribunal or the Assessing Officer and the Appellate Tribunal cannot be said to be right in setting aside the order of the CIT - thus, the order of the CIT(A) is restored and the matter is remitted back to decide the same afresh by the ITO to decide the case u/s 80P of the 1961 Act – Decided in favour of revenue.
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