It carries on business in manufacture and sale of tea from bought tea leaves and the purchase and supply of agricultural manure to members.
The said view of the Income Tax Officer was number accepted by the Appellate Assistant Commissioner who held that deduction under Section 80 P should first be made out of the income and thereafter the losses of the previous year were to be set off.
This appeal, by certificate, is directed against the judgment of the Madras High Court dated January 22, 1982 in Tax Case No.
In the previous year relevant to the assessment year 1972 73 the assessee earned a total income of Rs.
The assessee claimed a deduction of Rs.
53,386/ under Section 80 P 2 from the income of Rs.
The Income Tax Officer first set off the losses of previous years that had been carried forward against the income and since the losses were in excess of the income, he held that numberdeduction was permissible under Section 80 P of the Income Tax Act, 1961 hereinafter referred to as the Act .
The Kotagiri Industrial Cooperative Tea Factory Ltd., respondent hereinafter referred to as the assessee is a companyoperative society.
The said decision of the Appellate Assistant Commissioner was affirmed in appeal by the Income Tax Appellate Tribunal hereinafter referred to as the Tribunal .
The High Court followed the decision of this Court in Cloth Traders P Ltd. v. Additional Commissioner of Income tax, 1979 118 ITR 243, as well as its won decision in Commissioner of Income tax v. Venkatachalam, 1971 120 ITR 688.
It is also deriving income from dividend from investment with other companyoperative societies.
The losses of the earlier year which has been carried forward to the said assessment year were Rs.
407 of 1977.
The said question has been answered by the High Court against the Revenue.
85,150/ .
1,82,744/ .
85,150/ .
