1997 (4) TMI 49

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has proposed the following question of law by way of reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in allowing deduction under section 80P(2)(d) of the Income-tax Act, 1961, in respect of intere....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....har, who affirmed the order of the Assessing Officer. Again being not satisfied with this order, the assessee filed a second appeal before Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, who allowed the appeal of the assessee relying upon its earlier decision on the issue involved. The Revenue aggrieved by this order sought a reference for the opinion of this court on the abovestated ques....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as under: "80P. (2)(d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income." So far as the principle of interpretation applicable to a taxing statute is concerned, we can do no better than to quote the by-now classic words of Rowlatt J., in Cape Brandy Syndicate v. IRC [192....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... source of the investment because this section envisages deduction in respect of any income derived by the co-operative society from any investment with a co-operative society. It is immaterial whether any interest paid to the co-operative society exceeds the interest received from the bank on investments. The Revenue is not required to look to the nature of the investment whether it was from its ....