IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.3478 OF 2008

Commissioner of Income Tax, Chennai      ...Appellant(s)

Versus

M/s. Modern Engineers Constructions Co-op. Society Ltd.           ...Respondent(s)

O  R  D  E  R

Heard learned counsel on both sides.

The issue involved in this case is squarely covered  

by the judgement of this Court in the case of Commissioner  

of  Income  Tax,  Madras vs.  Ponni  Sugars  and  Chemicals  

Limited reported in 2008 (9) S.C.C.337.  Accordingly, the  

matter  stands  remitted  to  the  Tribunal  for  de  novo  

consideration in accordance with law as laid down by this  

Court in  Ponni Sugars and Chemicals Limited [supra].  On  

the merits of the case, it is made clear that all the  

contentions of the parties are expressly kept open.

The civil appeal, accordingly, stands disposed of  

with no order as to costs.

......................J.            [S.H. KAPADIA]

......................J.            [AFTAB ALAM]

......................J.            [SWATANTER KUMAR]

New Delhi, January 12, 2010.