Cooperative credit-facility income remained deductible despite alleged State-law breaches and deposits accepted from non-members.

Income from providing credit facilities to members qualified for the claimed deduction despite allegations that the cooperative society breached State cooperative-societies law and accepted deposits from non-members. The notes state that identical facts had arisen in the society's earlier assessment years, in which the deduction was directed to be computed. Applying those earlier Tribunal directions to the relevant year, the appellate approach was found free from infirmity, and the deduction was available to the society.

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Issues: Whether the cooperative society was entitled to deduction in respect of income from providing credit facilities to its members notwithstanding alleged violation of the State cooperative-societies law and its acceptance of deposits from non-members.

Analysis: The facts were identical to those in the assessee's own cases for earlier assessment years, where deduction had been directed to be computed. The appellate direction for the relevant year followed those earlier Tribunal directions, and no infirmity was found in that approach.

Conclusion: The society was entitled to the claimed deduction; the finding is in favour of the assessee.

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