2006 (9) TMI 95

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....is court by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh arising out of its order dated March 23, 1988, in I. T. A. No. 562 of in respect of the assessment year 1976-77 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the society's income of Rs. 95,15,104 was exempt under section 80P(2)(a)(iii) of the Incom....

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....by following the judgment of the Tribunal in the case of National Agricultural Co-operative Marketing Federation Limited. The decision of the Appellate Assistant Commissioner was upheld by the Tribunal. During the course of a proceedings, the Income-tax Officer had found a credit of Rs. 40,000 under the head 'Price fluctuation account' as per schedule C of the liabilities in the balance- sheet ....

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.... of that business, it was also exempt." 3. Learned counsel for the Revenue submitted that vide Finance (No.2) Act, 1967, section 81(0(c) of the Act was omitted and was reenacted as section 80P and the relevant extract from the said section is to the following effect : "80P.(1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred ....

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....ne appears for the assessee. 7. The amended provision has since been upheld by the High Court of Delhi in National Agricultural Co-operative Marketing Fedreation of India v. Union of India [2001] 251 ITR 285, which has been further affirmed by the hon'ble Supreme Court in National Agricultural Co-operative Marketing federation of India Ltd. v. Union of India, AIR 2003 SC 1329 ; [2003] 260 ITR 5....