COMMISSIONER OF INCOME-TAX VS NATIONAL AGRICULTURAL CORPORATION MARKETING FEDERATION LTD.
2001 P T D 1974
[246 I T R 486]
[Supreme Court of India]
Present: S.P. Bharucha, S.S.M. Quadri and Shivaraj V. Patil, JJ
COMMISSIONER OF INCOME‑TAX
Versus
NATIONAL AGRICULTURAL CORPORATION
MARKETING FEDERATION LTD.
C.A. No. 2135 of 2000, decided on 15/03/2000.
(Appeal by special leave from the judgment and order, dated February 1, 1999, of the Delhi High Court in I.T.R. No. 227 of 1978).
Income‑tax‑‑‑
‑‑‑‑Cooperative society‑‑‑Special deduction‑‑‑Law applicable‑‑‑Amendment of S.80‑P(2)(a)(iii) with retrospective effect‑‑‑Order passed by High Court in reference subsequent to amendment not taking note of amendment‑‑‑Writ petition challenging validity of amendment‑‑‑Direction to High Court to consider reference afresh alongwith writ petition‑‑‑Indian Income Tax Act, 1961, S.80‑P‑‑‑Constitution of India, Art. 226.
On a reference of the question whether the assessee, a cooperative society, was entitled to deduction under section 80P(2)(a)(iii) of the Income Tax Act, 1961, in respect of profits derived by marketing agricultural produce of its members, the High Court held that it was. On appeal to the Supreme Court:
Held, that the question basically was in regard to the retrospective operation of section 80P(2)(a)(iii) of the Income Tax Act, 1961, as amended by the Income‑tax (Second Amendment) Act of 1998, with retrospective effect from April 1, 1968. The order under challenge, though subsequent to the date of the amendment, did not take note thereof. The, respondents had now filed a writ petition in, the High Court which challenged the validity of the said amendment.
CIT v. National Agricultural Corporation Marketing Federation Ltd: (2000) 246 ITR 488 (Appex) set aside.
H.N. Salve, Solicitor‑General (S. Rajappa, B.V.B. Das and S.K. Dwivedi, Advocates with him) for Appellant.
G. Umapathy and Rakesh Kr. Sharma, Advocates for Respondent.
JUDGMENT
Leave granted.
The notice that was issued on the special, leave petition stated that the matter might be disposed of at this stage by an order remitting the tax reference case to the High Court for being heard afresh.
The question basically is in regard to the, retrospective operation of section 80P(2)(a)(iii) of the Income‑tax Act, as amended by the Second Amendment Act of 1998, with retrospective effect from 1st April, 1968. The order under challenge, though subsequent to the date of the amendment, does not take note thereof. The respondents have now filed a writ petition in the High Court (Writ Petition No. 1003 of 1999) which challenges the validity of the said amendment. It is, therefore, appropriate that the appeal be allowed, the order under appeal be set aside and this matter (I.T.R. No. 227 of 1978) be restored to the tile of the High Court to be heard and considered afresh, alongwith the writ petition.
Order on the appeal accordingly.
No order as to costs.
M.B.A./504/FC ????????????????????????????????????????????????????????????????????????????????? Order accordingly.