4,30,053/ Rs.
4,30,453.00 Total gross earnings Rs.
13,578/ was chargeable to tax.
In support of its claim the Society relied upon the instructions published in the Income tax Manual, 1946.
3,01,102.00 In a proceeding for assessment of the total income of the Society to tax for the year 1956 57 it was claimed that under s. 14 3 of the Indian Income tax Act, 1922 as added by s. 10 of the Finance Act 1955, with effect from April 1, 1955 the income of the Society from business was exempt from payment of tax, and that in accordance with the instructions issued under s. 60 of the Act, out of the gross income from securities amounting to Rs.
21,00,994.00 Investments in Government securities Rs.
15,09,490.00 Total overhead expenses and establishment overhead charges Rs.
130,60,653.00 Total working capital Rs.
The following table sets out the data relating to the earnings, investments, working capital, outgoings and expenditure of the Society for the year ending June 30, 1955, relevant to the assessment year 1956 57 Interest from Government securities Rs.
The appellant is a Society registered under the Co operative Societies Act, 1912.
473,42,603.00 Interest paid on debentures, deposits and other accounts Rs.
In the view of the Income tax Officer the Society companyld number claim the benefit of the Departmental Instructions, since in the relevant year of assessment those instructions had ceased to operate, and the Societys claim was governed by the Explanation to s. 8 of the Income tax Act as incorporated by the Finance Act of 1956, with effect from April 1, 1956.
Shah, J. This is an appeal with special leave.
