https://www.taxtmi.com/caselaws?id=5270 Interest earned merely on a cash security furnished under an agency agreement was not treated as income derived from an investment with another co-operative society, so the exemption failed and the receipt was taxable. By contrast, advances made to district co-operative federations to finance the sugar business were treated as an investment for the purposes of the co-operative exemption, because the funds were placed with other co-operative societies in furtherance of the business arrangement and the provision was construed liberally to encourage the co-operative movement. Accordingly, the first receipt was taxable and the second was exempt. en-us Fri, 10 Feb 1989 00:00:00 +0530 Wed, 03 Dec 2025 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5270 Interest earned merely on a cash security furnished under an agency agreement was not treated as income derived from an investment with another co-operative society, so the exemption failed and the receipt was taxable. By contrast, advances made to district co-operative federations to finance the sugar business were treated as an investment for the purposes of the co-operative exemption, because the funds were placed with other co-operative societies in furtherance of the business arrangement and the provision was construed liberally to encourage the co-operative movement. Accordingly, the first receipt was taxable and the second was exempt. Case-Laws Income Tax Fri, 10 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5270