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2008] 306 ITR 10 [2008] 174 TAXMAN 419 (SC) SUPREME COURT OF INDIA Commissioner of Income-tax, Chennai v. Modern Engineering Construction Co-operative Society Ltd. * DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM SHARMA, JJ. CIVIL APPEAL NO. 5497 OF 2008 SEPTEMBER 4, 2008 Section 80P of the Income-tax Act, 1961 - Deductions - Income of co-operative societies - Assessee-co-operative society claimed deduction under section 80P(2)(a)(i) - Assessing Officer rejected its claim on ground that income reflected by assessee could neither be attributed to actual labour of members nor could it be treated as arising out of collective disposal of its labour - Commissioner (Appeals) allowed assessee's claim - Tribunal as well as High Court dismissed revenue's appeals - On instant appeal, it was noted that High Court had proceeded on factual premises as if dispute related to interest received from members - Said confusion arose because High Court had mixed up factual position of some other case which related to a credit society engaged in banking - Besides decision of Court in Madras Autorickshaw Drivers v. CIT [2001] 117 Taxman 370 (SC), which had prima facie relevance to instant case, had not been noticed by High Court - Whether, in aforesaid circumstances, impugned order of High Court was to be set aside and matter was to be remitted back to it for disposal afresh - Held, yes CASES REFERRED TO Madras Autorickshaw Drivers v. CIT [2001] 117 Taxman 370 (SC) [Para 6]. V. Shekhar, Ranbir Chandra and B.V. Balaram Das for the Appellant. JUDGMENT Dr. Arijit Pasayat, J. - Leave granted. 2. In the instant appeal, challenge is to the of a Division Bench of the Madras High Court dismissing the appeals filed under section 260A of the Income-tax Act, 1961 (in short 'the Act'). The issue related to the claim of deduction made by the respondent under section 80P(2)(a)( i) of the Act. The Assessing Officer negatived the claim on the ground that the income reflected by the assessee can neither be attributed to actual labour of the members nor can be treated as arising out of collective disposal of its labour. The Commissioner of Income-tax (Appeals) following the earlier orders, allowed the appeal.…

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