1994 (2) TMI 44

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...., on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the shares of the Agricultural Refinance Corporation and the Unit Trust of India are held by the assessee-bank as its stock-in-trade? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the income earned in respect of the shares of the Agricultural Refinance Corporation and the Unit Trust of India is income from business carried on by the assessee and is exempt under section 80P(2) of the Income-tax Act, 1961 ?" The respondent-assessee is a co-operative society giving long-term finance to primary banks, co-operative farming societies, cultivators and land development bank....

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....of such holding is incidental to the business carried on by the assessee or that the holding is a business asset. In the ultimate analysis, the Commissioner held that the assessee was statutorily duty bound to make the investment and the shareholding as well as the investment in the Unit Trust of India was incidental to the business and the same had been made to safeguard the business itself. On these reasonings he further recorded a finding that the income in question received or accrued to the appellant was the income from business and the same was exempt from tax under section 80P(2) of the Act, like the other income of the co-operative society. This view of the Commissioner of Income-tax (Appeals) was upheld by the Tribunal. The applica....