1995 (9) TMI 61

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....by the Revenue under section 256(2) of the Income-tax Act, 1961, for stating the case and to make a reference of the following common questions : " (i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that ginning and pressing charges received from the members is allowable as an exemption though it was with the aid of power ? (ii) Whether, on the ....

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....viso was introduced with effect from April 1, 1988, and not for the earlier years ? (vi) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the penalty amounting to Rs. 1,30,000 on the ground that the foundation of levy of penalty does not stand even when the Department has not accepted the same ? " We have heard learned senior standing counsel fo....

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....mbers and also processing the agricultural produce of its members and, therefore, it is entitled for deduction of the whole of the amount of profits and gains of business attributable to such activities from the assessable income under section 80P(2) of the Act. The Assessing Officer negatived this claim on the ground that section 80P(2)(a)(v) can be invoked only where the processing is done witho....

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.... to enquire into the question as to what extent payment has been made and to give deduction to the actual payment made. This decision has led to question No. 4. Question No. 5 is incidental to the answers to other questions. The order of the Tribunal makes it abundantly clear that deduction is granted in regard to the profits from the ginning and pressing operation only because the society is eng....