COMMR.OF INCOME TAX,CHENNAI vs M/S MODERN ENG.CONSTRN.CO-OP.STY.LTD.

The Supreme Court set aside the Madras High Court's judgment dismissing appeals under Section 260-A of the Income Tax Act, 1961, regarding the claim of deduction under Section 80P(2)(a)(i). The Court found that the High Court had confused the factual basis of the case with another involving a credit society, leading to an indefensible order. The matter was remitted to the High Court for fresh consideration in light of the relevant decision in Madas Autorickshaw Drivers v. Commissioner of Income Tax (2001).