2011 (10) TMI 30

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..... exercise indicated in the decision of the Supreme Court in Ponni Sugars and Chemicals Ltd. (2008 -TMI - 30719 - SUPREME COURT),, viz., examination of the memorandum of association, the articles of association, the returns of income filed with the Department, the status of business indicated in such returns, etc. T set aside - matter remanded back to ITAT
MR.JUSTICE P.JYOTHIMANI, MR.JUSTICE P.P.S.JANARTHANA RAJA, JJ. For Appellant : Mr.J.Naresh Kumar Standing Counsel For Respondent : Mr.J.Balachander for M/s.Sridhar J U D G M E N T Delivered by P.JYOTHIMANI, J. This tax case appeal is preferred by the Revenue against the order of the Income Tax Appellate Tribunal Madras 'A' Bench dated 31.3.2004 made in ITA No.2534/Mds/1994 for t .....

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..... he assessee and allowed the appeal. Hence, the present tax case appeal. 3. This Court in Commissioner of Income Tax v. Tirupattur Co-op. Sugar Mills Ltd., [2009] 310 ITR 360 (Mad) considered a similar issue in the light of the decision of the Supreme Court in Ponni Sugars and Chemicals Ltd., [2008] 306 ITR 392, wherein the Supreme Court has observed as follows: 'With regard to the question whether the assessee was entitled to exemption under Section 80P(2)(a)(i) of the Income Tax Act, 1961, in respect of interest received from the members of the society, we find that none of the authorities below, including the High Court, have examined the memorandum of association filed by Salem Coop. Sugar Mills Ltd., Madurantakam Coop. Sugar Mills Ltd .....

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..... 4. On the facts of the present case, the Tribunal has simply followed its earlier decision in identical issue and held that the interest earned on credit facilities provided to its members is eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act. While holding so, the Tribunal has not decided the matter on merits by carrying out the exercise indicated in the decision of the Supreme Court, viz., examination of the memorandum of association, the articles of association, the returns of income filed with the Department, the status of business indicated in such returns, etc. In view of the above, the order of the Tribunal should be set aside and accordingly, this tax case appeal is allowed and the impugned order of the Tri .....

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