TaxTMI 
TaxTMI 
TaxTMI 
1996 (8) TMI 72
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....1983-84, 1984-85, 1985-86 and 1986-87 are entitled to exemption under section 80P of the Income-tax Act, 1961 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the income from house rent at Rs. 4,239 and Rs. 11,007 for assessment years 1984-85 and 1985-86 are entitled to exemption under section 80P of the Income-tax Act, 1961 ? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the income from miscellaneous receipts at Rs. 10,373, Rs. 6,984, Rs. 14,662 and Rs. 8,002 for assessment years 1983-84, 1984-85, 1985-86 and 1986-87 are entitled to exemption under section 80P of the Income-tax Act, 1961 ? (iv) Whether, on ....
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....sh in CIT v. Dhar Central Co-operative Bank [1984] 149 ITR 438 ; CIT v. Bhopal Co-operative Central Bank Ltd. [1987] 164 ITR 713 ; CIT v. Bhopal Co-operative Central Bank Ltd. [1988] 172 ITR 423 and CWT v. Jambukumarsingh Kasliwal [1987] 166 ITR 623. The Tribunal following the aforesaid decisions of the Tribunal and of the High Court of Madhya Pradesh maintained the orders of the Deputy Commissioner of Income-tax (Appeals) and dismissed the departmental appeals. Against these orders, the Department approached the Tribunal for making reference to this court and, accordingly, the aforesaid four questions of law have been referred by the Department to this court for answer. So far as the first question whether the Tribunal is correct in law i....
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....h has been made by the Tribunal in its order, the receipts are attributable to the banking business. These receipts which are attributable to the banking business of the assessee are therefore entitled to exemption. There are concurrent findings of all the three courts below that the income from these receipts is attributable to the banking activity of the assessee. There is no reason to take a different view than the one taken by the three courts below in the matter. This is also supported by a decision of the Division Bench of this court in the case of CIT v. Dhar Central Co-operative Bank [1984] 149 ITR 438 where, in a normal situation, this question was answered in favour of the assessee and it was observed as under : " Judged by this ....
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....ct of the profits and gains of business carried on by it, if it arises from the business of banking or providing credit facilities for its members. However, if such a co-operative society also engages itself in activities other than the business of banking or providing credit facilities the profits derived from such business shall not be exempt from tax if it exceeds rupees fifteen thousand. It is, therefore, obvious that the entire income derived by a co-operative society from the business of banking or providing credit facilities to its members is exempt from income-tax, but if that society also engages itself in any other activity and earns profit therefrom, the income so derived becomes liable to assessment and payment of income-tax if ....