9911796707
TMI Blog1999 (7) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs. 10,000 in respect of an investment in property. The return was processed under section 143(1)(a) on 27-1-1995 accepting the income returned and an intimation under the said section was issued on 22-2-1995. However, later on the case was selected for scrutiny and notice under section 143(2) was issued on various dates. Finally the assessee personally appeared for the hearing and furnished the details called for. During the course of hearing it was noticed by the Assessing Officer that the assessee had claimed rebate under section 88 in respect of an investment in property in a sum of Rs. 10,000 (being the maximum claim allowable). When the assessee was requested to furnish details of this item it was replied by the assessee that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appellate authority and the Assessing Officer. He argued that the word 'company' appearing in clause (b) of section 88(2)(xv) of the Income-tax Act had a wide meaning and it included AOP, partnership and other combination of individuals. He also contended that the word 'member' appearing in the said clause was also not applicable in the case of the company but only in the case of a co-operative society. He further contended that the words 'other authority' appearing in sub-clause (a) of section 88(2)(xv) would include private company also. He also drew our attention to the object of the rebate for investment in house property by contending that it was the intention of the Legislature to encourage savings and to chanellise the savings f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy shall be deemed to be a company only for such assessment year or assessment years (whether commencing before the 1st day of April, 1971, on or after that date) as may be specified in the declaration." Also the words 'co-operative society' have been defined in section 2(19) of the Income-tax Act in the following words: "'co-operative society' means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies." From a plain reading of the definition of 'company' it could be inferred that by no stretch of imagination the word 'company' could be construed to include AOP, partnership and other combi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der to claim rebate under section 88(2)(xv) the assessee should either be a shareholder of the company or a member of the co-operative society. Obviously these conditions are not satisfied by the assessee and the assessee was only a mere customer of the said M/s. Ankur Housing Investments. If the assessee's argument is accepted the investment in housing developed by any entity not being those mentioned in section 88 of the Income-tax Act would be eligible for rebate, which is not the intention of the Legislature because if it was so the Legislature would have included such entities also in clear terms while drafting the said section. When the section is plain there is no need for importing any words to interpret the same. After a careful co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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