1992 (6) TMI 81 - AT - Income Tax

Assessee denied deduction under section 80QQ for 1986-87; CIT decision overturned for 1983-84, 1984-85

Inspecting Assistant Commissioner. Versus Ramanathapuram District Co-operative Printing Works Limited.

The Tribunal ruled that the assessee was not eligible for a deduction under section 80QQ for the assessment year 1986-87 due to legislative changes. For ... Co-operative Society, Profits And Gains, Property Tax Issues Involved:1. Eligibility for deduction under section 80QQ for the assessment years 1983-84, 1984-85, and 1986-87.2. Definition and scope of the term 'books' under section 80QQ.3. Applicability of section 80QQ for the assessment year 1986-87 due to legislative amendments.Issue-wise Detailed Analysis:1. Eligibility for Deduction under Section 80QQ:The primary issue was whether the assessee, a co-operative society engaged in printing books, registers, and forms, was entitled to deduction under section 80QQ for the assessment years 1983-84, 1984-85, and 1986-87. The Assessing Officer denied the deduction, stating that the assessee was not engaged in the 'publication of books' as understood by a common man. The CIT (Appeals) partially allowed the deduction, holding that certain items printed by the assessee could be considered as 'books,' while others could not.2. Definition and Scope of the Term 'Books':The term 'books' was not defined in the Act, leading to differing interpretations. The assessee argued that the term should be understood in its broad dictionary sense, which includes all kinds of books except those explicitly excluded under section 80QQ (e.g., newspapers, journals, magazines). The CIT (Appeals) adopted a nuanced approach, distinguishing between items like registers and ledgers, which he considered as 'books,' and items like receipt books and forms, which he did not. The Tribunal, however, emphasized that the term 'publication of books' should be understood in its ordinary sense, not merely based on dictionary definitions. It highlighted that the legislative intent was to exclude items like newspapers, journals, and pamphlets, which contain printed words but do not fit the ordinary understanding of 'books.'3. Applicability of Section 80QQ for the Assessment Year 1986-87:The Tribunal clarified that section 80QQ, introduced by the Taxation Laws (Amendment) Act, 1970, was applicable only up to the assessment year 1985-86. The deduction under this section was no longer available for the assessment year 1986-87 due to legislative amendments. Consequently, the assessee was not entitled to any deduction under section 80QQ for the assessment year 1986-87, and the CIT (Appeals)'s order on this issue was set aside.Conclusion:The Tribunal held that the assessee was not entitled to deduction under section 80QQ for the assessment year 1986-87 due to the cessation of the section's applicability. For the assessment years 1983-84 and 1984-85, the Tribunal concluded that the CIT (Appeals) was not justified in allowing the deduction even to a limited extent. It restored the Assessing Officer's orders, denying the deduction under section 80QQ, as the items printed by the assessee did not qualify as 'publication of books' within the ordinary meaning of the term.