1986 (7) TMI 42

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....t of the court was delivered by N. D. VENKATESH J.-This is a reference under section 256(1) of the Income-tax Act, 1961. The question referred is as under: "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in not exempting the assessee's income of Rs. 1,20,206 under section 80P(2)(e) of the Income-tax Act, 1961 ? " The assessee is a co-operative....

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....sessee, the Tribunal has upheld the order of the Commissioner. Besides hearing counsel for the assessee and counsel for the Revenue, we have also perused the records. Section 80P(2)(e) of the Income-tax Act under which exemption is claimed reads thus : " 80P. Deduction in respect of income of co-operative societies.-(1) Where, in the case of an assessee being a co-operative society, the gross t....

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....ay be, as observed by the Gujarat High Court, in Surat Vankar Sahakari Sangh Ltd. v. CIT [1971] 79 ITR 722, that the exemption is available in respect of the income derived only from letting out of godowns or warehouses. This is a strict construction of clause (e). Or, it may be available regarding the income derived by the society by the use of such godowns or warehouses without parting with poss....