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TMI Blog2024 (11) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... ds overruled, the order dated 15.07.2002 passed by the respondents is not sustainable. As on today, it is settled that the Cooperative Society like the petitioner would be exempted from payment of tax, and therefore, there was no occasion for depositing advance tax. Hence, the waiver of interest under Section 234-B and 234-C of the Act for the assessment years 1996-97, 199798 and 1998-99 was wrongly rejected. Accordingly, the order dated 15.07.2002 is quashed and set aside. The petitioner society is entitled to claim the waiver of interest for the aforesaid period. Assessee appeal allowed. - HON BLE MR. JUSTICE SANJEEV PRAKASH SHARMA AND HON BLE MR. JUSTICE SANJAY VASHISTH Present: For the Petitioner: Mr. Rajesh Garg, Senior Advocate assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of Division Bench judgment of this Court in C.I.T. vs Punjab State Cooperative Supply Marketing Federation Limited 182 ITR 53. The judgment of this Court was approved by the Supreme Court in Kerala State Cooperative Marketing Federation Limited vs Commissioner of Income Tax 231 ITR 814. 4. Unamended provision of Section 80(P) (2) (a) (iii) of the Act reads as under:- 80(P) (1) Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. (2) The sums referred to in sub section (1) sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 119 of the Act which provides that if any income which was not chargeable to the income tax on the basis of any order passed in the case of assessee by the jurisdictional High Court subsequently, in consequence of any retrospective amendment of law or decision of the Hon ble Supreme Court, the assessee becomes liable to pay advance tax or advance tax paid is less and the assessee becomes liable to pay interest u/s 234-B and 234-C, then it would be a fit case for waiver of such interest. 6. Learned senior counsel for the petitioner further submitted that earlier the petitioner had preferred CWP No.10547 of 1997 - The Haryana State Co-operative Supply Marketing Federation Limited (Hafed), Chandigarh vs Chief Commissioner of Income Tax (North ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riculturists. Later on in Kerala State Cooperative Marketing Federation Limited s case (supra), the judgment passed in Assam Cooperative Apex Marketing Society Limited s case (supra) was overruled. It was held that the exemption was also available as per the aforesaid section to Apex Cooperative Societies. Since the amendment has been made retrospectively with effect from 01.04.1968 in Section 80(P) (2) (a) (iii) of the Act, the apex society like the petitioner, would not be entitled to exemption for the assessment years 1996-97 and 1997-98. The benefit was given till the judgment was in force. The benefit cannot be granted for the year 1996-97 onwards. 8. The Apex Court in Mavilayi Service Cooperative Bank Limited and others vs Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o specifically excludes only cooperative banks, which are cooperative societies who must possess a licence from RBI to do banking business. Given the fact that the assessee in that case was not so licensed, the assessee would not fall within the mischief of Section 80P (4). 9. We find that the impugned order has been passed rejecting petitions for waiver of interest on the ground that the petitioner should have paid advance tax for three assessment years on the basis of Supreme Court Judgment in Assam Cooperative Apex Marketing Society Limited s case (supra). Since the same stands overruled, the order dated 15.07.2002 passed by the respondents is not sustainable. 10. As on today, it is settled that the Cooperative Society like the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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