9911796707
TMI Blog2003 (3) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... dverting to the provisions of the Kerala Cooperative Societies Act and the Rules - we set aside the order of the Tribunal and remit the matter back to the Tribunal for fresh consideration in accordance with law - - - - - Dated:- 28-3-2003 - Judge(s) : G. SIVARAJAN., J. M. JAMES. JUDGMENT The judgment of the court was delivered by G. SIVARAJAN J.-The Income-tax Appellate Tribunal, Cochin Bench, has referred the following question of law at the instance of the Revenue pursuant to the directions issued in the judgment dated October 5, 1999 in O.P. No. 21571 of 1999 for decision of this court: "Whether, on the facts and in the circumstances of the case, the assessee was entitled to exemption under section 80P(2)(a)(vi) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring for the applicant, submitted that the bye-laws of the society had clearly provided for voting right to members who are sympathisers, without any right to work, and therefore, the proviso to section 80P(2)(a) squarely applies. Standing counsel further submits that the contention of the assessee before the Assessing Officer and before the first appellate authority was that sympathiser members were also doing manual work, and therefore, the proviso is not attracted. However, a different contention was taken up before the Tribunal to the effect that the provisions in the bye-laws giving voting power to the sympathisers, who were not given the right to work, was contrary to the provisions of the Kerala Co-operative Societies Act, particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o to section 80P(2)(a). Therefore, it is necessary to refer to the provisions of section 80P. Under section 80P, in the case of a co-operative society, if the gross total income includes any income referred to in subsection (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sum specified in sub-section (2) in computing the total income of the assessee. Under clause (vi) of sub-section (2), the income, which relates to the collective disposal of the labour of its members, is liable to be deducted. There is no dispute that the income of the co-operative society relates to the collective disposal of the labour of its members. However, the proviso to sub-section (2)(a) says that in the case of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of a society shall have one vote in the affairs of the society: Provided that- (a) nominal or associate member shall not have the right to vote; (b) where the Government is a member of the society, each person nominated by the Government on the committee of the society shall have one vote except when the right to vote is to be exercised for election of office bearers of the society;..." The expression "nominal or associate member" is defined in section 2(m) as follows: "(m) 'nominal or associate member' means a member who possess only such privileges and rights of a member who is subject only to such liabilities of a member as may be specified in the bye-laws;" Thus, going by the provisions of section 20, voting right is confe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hra Pradesh are similar to the Kerala Co-operative Societies Act and the Rules, and as to whether the said decision can be applied to the facts of this case as well. According to us, the Tribunal was not justified in blindly following the decision of the Hyderabad Bench of the Tribunal, without adverting to the provisions of the Kerala Cooperative Societies Act and the Rules, particularly the provisions which we have referred to above. In the above circumstances, we set aside the order of the Tribunal and remit the matter back to the Tribunal for fresh consideration in accordance with law and in the light of the observations made hereinabove. In view of the above, we decline to answer the question referred. A copy of this judgment under ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
