TaxTMI 
TaxTMI 
2019 (1) TMI 1138
X X X X Extracts X X X X
X X X X Extracts X X X X
....P of the Act, is the interest derived from a credit facility extended to one of its employees and the employee of one of its members. Both the credit facilities are for personal purposes, admittedly. 2. The question arising from the order of the Tribunal is re-framed as follows: (i) Ought not the Tribunal have noticed the specific words employed in Section 80P(2)(a) of the Act and given a wider amplitude to the words "attributable to the business" and held the interest earned by the assessee to be out of credit facilities extended from the surplus funds of the business of the assessee ? 3. Section 80P(1) & (2)(1)(i) reads as under: "80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er Section 80E of the Act. There a deduction of 8% was allowed from the profits and gains attributable inter alia to the business of generation of electricity. The assessee was a Company involved in generation of electricity and income on which deduction claimed was of consideration received on sale of old machinery. The Hon'ble Supreme Court found that the words 'derived from' and 'attributable to' have different connotations; the latter having wider import. If the words used were 'derived from the business of production of electricity', then necessarily a sale of old machinery would not come within its ambit. However, when the profits and gains were attributable to the business of production of electricity, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y; (c) society engaged in marketing agricultural produce of its members; (d) engaged in produce of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; (e) a society engaged in the processing without the aid of power of the agricultural produce of its members; or (f) a primary society engaged in supplying milk raised by its members to a federal milk cooperative society. We may notice that the provision is introduced with a view to encouraging and promoting growth of cooperative sector in the economic life of the country and in pursuance of the declared policy of the Government. The correct way of reading the different heads of exemption enumerat....