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TMI Blog1991 (3) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... view that in view of the increase in work load and with the consent of its members the society formed in 1948 had floated four other societies village wise retaining the character of parent body to itself and the new registrations to the assessee-society and the four floated societies in the year 1968 did not affect assessee's identity and basic character as that of the society formed in 1948. He further held that the notification gave a right of exemption of its income from tax to the assessee-society and that right was not taken away by any act of Parliament. He accordingly directed the ITO to grant exemptions to the assessee-society under the notification. Hence these appeals by revenue. 3. Mr. D.D. Goel, the learned D.R., urged that the division of the society formed in 1948 into five societies, including the assessee-society, resulted in dissolution of the original society and the assessee-society came into existence as a new society in 1968. He further submitted that in view of the provisions of section 80P the notification did not continue to be in force. 4. Mr. L.L. Shukla, the learned counsel for the assessee, on the other hand, submitted that it was simply a case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eties Rules, 1965 (the Rules). The Registrar accorded his pre-sanction to the proposal on 30-4-1968. By adopting a resolution in its special meeting held on 26-9-1968, the old society divided itself into five societies. The Registrar passed his order under section 17 of the Gujarat Societies Act granting registration to all the five societies on 27-9-1968. The relevant part of his order runs as under :-- "The sanction to division has been accorded to the following 5 Co-operative Societies by Registering them as per the Resolution No. 62 dated 19-9-1969 by Distt. Panchayat as per the powers allotted by Sec. 9 and its such sections by production and Co-operative Society of Gujarat State Co-operative Laws. The assets and liabilities as per Annexure 2 has been divided between the five divided and constructed Seva Sahkari Mandli Ltd. ; And the members will be the Resident of each village. The sanction has been accorded. Shri Gopalgram Juth Krushi Vishiyak Vividh Sarkari Sahkari Mandli Ltd ; Gopalgram, Ta Dhari, Distt. Amreli (Greater Bombay State), Registered at 14/228 dated 26-10-1948 of Section 10 of the Co-operative Laws of 1925, has been cancelled as per section 18 of Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may or may not affect 'ownership' but only 'possession' depending upon its mode. Accordingly it may or may not result in extinction of one's rights in and title to the property transferred and simultaneous creation of right and title in the other. It pre-supposes the existence of identities of both, the transferor and the transferee. 11. 'Division' pre-supposes two or more than two persons having joint or common rights in the property. It commences on one individual identity of the whole ends in loss of that identity. The shares of joint or co-owners may be defined or definite but none of them can claim ownership to possession or user of any specific or particular part, even proportionate to his share, to the exclusion of the other(s). Division not only brings in a change in the ownership, user and possession of the property, but also in the status of the persons concerned. It results in extinction of the rights of the persons concerned in the property as one unit i.e. as a whole and creates individual rights in the divided units or parts. It does not involve 'from' and 'to' in the sense 'transfer' does. Rights in whole are reduced to rights in parts. On division the identity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed business within a reasonable time of its registration or has ceased to function. (2) An order made under sub-section (1) shall be published in the Official Gazette. (3) The society shall, from the date of such order of cancellation, be deemed to be dissolved and shall cease to exist as a corporate body. " It may be noted that the division of a society is to necessarily result in its dissolution with the cancellation of registration to it. That is not so in the case of transfer of the society. It is also worth mentioning that dissolution is to ensue in case of transfer also but of the whole of the society and not a part thereof. Obviously the transfer of whole of the society is to affect the very existence of the society as a whole, whereas a partial transfer is simply to affect its assets and liabilities without affecting the existence of the society. 14. In the instant case the various resolutions adopted by the old society from time to time and the order passed by the Registrar cancelling registration to the same under section 18 clearly state that it was a case of division of the old society into five societies. As a result of such division, the deemed registration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct the Central Government had made the Part B States (Taxation Concessions) Order, 1950 vide No. SRO 998 dated 2-12-1960. This notification was published in Gazette of India, Extraordinary dated 2-12-1960. Paragraph 15 of this concession order exempted from tax the incomes/wealth of certain members of the families of Ex-Rulers of Part B States. This concession order conferred no exemption, or reduction in rates of tax to the incomes of the co-operative societies, 1922 Act also did not confer such benefits to co-operative societies. With a view to confer such benefits upon the co-operative societies, to give boost to the co-operative movement in the country, the Central Government amended this Concession Order by Part B States (Taxation Concessions) Amendment Order, 1951 by Notification No. SRO 1800 dated 14-11-51 which ran as under :"Part 'B' States (Taxation Concession) Order, 1950--Amendment. Notification No. SRO 1800 dated the 14th November, 1951. In exercise of the powers conferred by section 60A of the Indian Income-tax Act, 1922 (XI of 1922), the Central Government hereby directs that the following amendment shall be made in the Part 'B' States (Taxation Concession) Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -operative societies. Notification issued under sections 60 or 60A of 1922 Act and in force immediately before the commencement of the Act, to the extent of provisions made in section 80P of the Act, therefore, stood repealed and ceased to have any force. However, in respect of such notification as were issued under sections 60 or 60A of 1922 Act and were in force immediately before the commencement of the Act in respect of which no provisions were made in the Act continued in force subject to the power of rescission or amendment of such notifications to the Central Government. 21. It is true that the Concession Order as amended by Notification No. SRO 1800 dated 14-11-1951 does not appear to have been rescinded by the Central Govemment in exercise of its powers under proviso to section 297(2)(1) but the extent of the applicability thereof shall have necessarily to be judged in the light of the mandate contained in the main clause (1) of sub-section (2) of section 297. In doing that neither the facts that the Part 'B' State of United State of Saurashtra stood merged with State of Gujarat with effect from 1-5-1960, the Bombay Co-operative Societies Act was repealed by Gujarat Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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