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Issues involved: Appeal u/s 260A of the Income-tax Act, 1961 against order of Income-tax Appellate Tribunal for assessment year 1991-92.
Facts: The appellant, a Co-operative Society in Punjab, claimed exemption u/s 80P(2)(a)(iii) and 80P(2)(a)(iv) for the assessment year 1991-92. Initially, deduction was allowed based on a Punjab High Court decision, but later Supreme Court ruled that deduction u/s 80P(2)(iii) is only for co-operative societies with agriculturist members. Assessing Officer re-opened the case based on this ruling, disallowing deductions claimed. Commissioner's Decision: Commissioner upheld disallowance u/s 80P(2)(iii) but allowed deduction u/s 80P(2)(iv) citing inapplicability of Supreme Court ruling. Tribunal's Decision: Tribunal upheld re-opening of the case and re-assessment, stating that notice u/s 148 was validly issued based on law at that time. Even though Supreme Court ruling was overruled later, retrospective amendment made the re-assessment valid. Grounds of Appeal: Appellant challenged re-opening of assessment post Supreme Court's overruling of the earlier judgment, questioning the validity of notice u/s 148 and consequent re-assessment. Court's Analysis: Court found no merit in the appeal. Notice u/s 148 was validly issued based on the law at that time, and subsequent developments in law were considered during re-assessment. Retrospective amendment validated the re-assessment, making it legally sound. Conclusion: Appeal dismissed as no substantial question of law arose from the Tribunal's order.
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