Co-operative society letting income not covered by section 80P(2)(c), and no referable question of law arose.

Income derived by a co-operative society from letting out surplus building space was treated as outside the society's own business activity and, on that basis, outside section 80P(2)(c) of the Income-tax Act, 1961. The provision was read as confining deduction to profits and gains attributable to activities of the society other than those covered by clauses (a) and (b), and the letting income was not regarded as part of the society's corporate operations. The High Court also noted that the statutory language was clear, so no referable question of law arose for the Tribunal under section 256(2). The reference petition was dismissed.

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Issues: Whether income derived by a co-operative society from letting out surplus space in its building is an activity covered by section 80P(2)(c) of the Income-tax Act, 1961, and whether any referable question of law arose for the Tribunal to state a case under section 256(2).

Analysis: Section 80P grants deduction to co-operative societies according to the nature of the activities carried on. The provision in clause (c) applies only to activities of the society other than those specified in clauses (a) and (b), and the deduction is confined to profits and gains attributable to such activities. Income from letting out surplus building space is not part of the society's corporate activity or the combination of operations undertaken by it. On that footing, the statutory language was treated as clear, leaving no room for debate on the suggested question.

Conclusion: The income from letting out surplus space did not qualify for deduction under section 80P(2)(c), and no question of law arose for reference. The petition was dismissed.

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