TMI Blog1989 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... profits of the assessee-co-operative society for the relevant assessment year 1961-62 under the said Act ? (2) Whether the total exemption from income-tax granted to the profits of any co-operative society registered under the Merged States law under clause 13(v) of the Merged States (Taxation Concessions) Order, 1949, issued under section 60A of the Indian Income-tax Act, 1922, has ceased to be available to the profits of the assessee-co-operative society for the relevant assessment years 1962-63 to 1969-70 inasmuch as a provision in this regard within the meaning of section 297(2)(1) of the Income-tax Act, 1961, had been made under section 81/80P of the Act ? (3) Whether the Tribunal was correct in law in taking the view that the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hardship or anomaly, or removing any difficulty that might arise as a result of the extension of the 1922 Act to the merged territories, to make, by general or special order, an exemption, reduction in rate, or other modification in respect of income-tax in favour of any class of income, or in regard to the whole or any part of the income of any person or class of persons. The proviso to section 60A stated that the power conferred would not be exercisable in the case of merged territories after March 31, 1955, except for the purpose of rescinding an exemption, reduction or modification already made. Under the provisions of section 60A of the 1922 Act, the Merged States (Taxation Concessions) Order, 1949, was made. Clause 13(v) read thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of a co-operative society, ceased to have force. It is not necessary to consider the relevant provision in the 1961 Act at this stage because, to the assessment of the assessee for the assessment year 1961-62, the provisions of clause (a) of sub-section (2) of section 297 would apply, namely, where a return of income had been filed before the commencement of the 1961 Act by any person for the assessment year, the proceedings for the assessment of that person for that year would be taken and continued as if the 1961 Act had not been passed. It is seen that the assessment of the assessee for the assessment year 1961-62 was completed under the 1922 Act. It indicates that it had filed its return for this assessment year prior to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner. What must be seen is whether the 1961 Act made provision for assessment of the income of a cooperative society which is what the Merged States (Taxation Concessions) Order provided for ; in other words, whether they covered the same field. Clearly, section 81 (later 80P) of the 1961 Act made provision for assessment of the income of a co-operative society. Therefore, the 1961 Act and, the Merged States (Taxation Concessions) Order operated in the same field and could not stand together. Hence, by reason of the provisions of clause (1) of sub-section (2) of section 297, the Merged States (Taxation Concessions) Order, in so far as it made provision for the income of a cooperative society, ceased to have effect when the 1961 Act came into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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