TMI Blog2008 (7) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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. Punjab State Co-operative Supply Marketing Federation Ltd. [1990] 182 ITR 581. Later on, the decision of this Court, was reversed by the Supreme Court in case of Assam Co-operative Apex Marketing Society Ltd. v. Addl. CIT [1993] 201 ITR 3381, whereunder it was held that deduction under section 80(P)(2)(iii) is to be allowed only to those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee 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. CIT [1998] 231 ITR 8142 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 (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient to form an opinion that income of the assessee had escaped assessment. So on the date of issuing of notice under section 148, the formation of the belief by the Assessing Officer that income had escaped assessment was valid. If the judgment of the Supreme Court is overruled subsequently, the Assessing Officer would be bound to apply the law laid down by the Hon ble Supreme Court subsequently. However, the validity of notice under section 148, in our considered view, would not be affected merely because the Hon ble Supreme Court has taken a different view subsequent to the issue of notice under section 148. One has to take into account the facts and circumstances of the case and the law as it existed on the date of issue of notice to de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , bound to reassess the income on the basis of retrospective amendment. The assessment had been re-opened on the basis of the decision of the Supreme Court in case of Assam Co-op. Apex Marketing Society (supra). So, however, the Assessing Officer would not be entitled to reassess the income on the basis of the said decision as the same had been overruled. So, however, as stated earlier during the course of reassessment proceedings, the law had been amended. The income on the basis of the amended law (section 80P) had escaped assessment. Since the reopening of assessment on a different ground was validly initiated, the Assessing Officer was entitled to bring to tax any other income that had escaped assessment which came to the notice of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt made in section 80P of the Act on 1-4-1968 by the Income-tax (Second Amendment) Act, 1998 could not make the notice under section 148 as valid because the said notice was not issued on the basis of the said amendment. 8. After hearing the counsel for the assessee and going through the impugned order, we do not find any merit in this appeal. 9. In this case, the Assessing Officer had issued the notice under section 148 of the Act for re-opening the assessment on 12-3-1996 on the basis of the decision of the Supreme Court in case of Assam Co-op. Apex Marketing Society Ltd. (supra) dated 25-4-1993, therefore, the validity of the notice under section 148 would not be affected merely because subsequently the Supreme Court has taken a di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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