2009 (2) TMI 389

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....e relevant assessment years are 1990-91, 1988-89 and 1989-90. "1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee engaged in the manufacture is eligible for the benefit of section 80P(2) (a) in respect of interest received from members? 2. Whether in the facts and circumstances of the case, the Tribunal was right in allowing the replacement of independent machinery as revenue expenditure, when the machinery was erected after demolishing the old unit?" 2. The facts as culled out from the statement of facts in the memorandum of grounds of appeal are as follows 3. The assessee is a co-operative society running a sugar factory. For the assessment year 1988-89, the assessee clai....

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....ety Ltd. reported in [1991] 188 ITR 671. The decision of this court has been taken to the Supreme Court in a batch of appeals. The Supreme Court in the case of CIT v. Ponni Sugars and Chemicals Ltd. reported in [2008] 306 ITR 392 has observed as follows: "With regard to the question whether the assessee was entitled to exemption under section 80P(2) (a) (i) of the Income-tax Act, 1961, in respect of interest received from the members of the society, we find that none of the authorities below, including the High Court, have examined the memorandum of association filed by Salem Co-operative Sugar Mills Ltd., Madurantakam Co-operative Sugar Mills Ltd., Ambur Co-operative Sugar Mills Ltd., Dharmapuri District Co-operative Sugar Mills Ltd., V....

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....(2)(a)(i). 8. In the case on hand also, these details are not available. Hence, for the pose of deciding the question of law referred to above, we are of the opinion that the exercise indicated by the Supreme Court has to be done by Tribunal. Hence the order of the Tribunal in respect of that question of law is hereby set aside. The matter is remitted back to the Tribunal for reconsideration as per the direction of the Supreme Court in the case of Ponni Sugars and Chemicals Ltd; reported in [2008] 306 ITR 392. 9. In respect of the second question of law, the Tribunal has reproduced the finding recorded by the Commissioner of Income-tax (Appeals) to the effect that the earlier centrifugal machine unit was demolished and in its place a ....