2011 (8) TMI 54 - HC - Income Tax

Exemption u/s 80P(2)(a)(i) - interest received from the members of the society - Assessee placed before this Court the decision reported in Commissioner of Income Tax Vs. Ponni Sugars and Chemicals Ltd. (2009) ITR 386 ITR 392 (SC) , for which the assessee is also a party, wherein the Apex Court remanded the matter back to the Tribunal on the question whether the society was entitled to exemption under Section 80P(2)(a)(i) of the Income Tax Act, 1961, in respect of the interest received from the members of the society, since the authorities below had not examined the Memorandum of Association, Articles of Association, the return of income filed by the assessee and the status of the business indicated in the return - Thus, the Apex Court reversing the decision of this Court held that the eligibility condition in the schemes has to be considered - Decided in favour of Revenue.

Summary

The High Court of Madras allowed the Revenue's appeal against the Tribunal's order for the assessment years 1987-1988 and 1992-1993. The decision was based on the Supreme Court's ruling in Commissioner of Income Tax Vs. Ponni Sugars and Chemicals Ltd., remanding the matter back to the Tribunal to consider exemption eligibility under Section 80P(2)(a)(i) of the Income Tax Act. The High Court set aside the Tribunal's order and remitted the matter back for further consideration.