TaxTMI 
TaxTMI 
2013 (5) TMI 1053
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts : Siddhartha Sah, Amar Shukla and Gopal Narain. JUDGMENT BARIN GHOSH, C.J. 1. Respondents, in these appeals, are registered Co-operative Societies. They are providing credit facilities to their members. They are not Co-operative Banks and, accordingly, no banking regulation provision is applicable to them. The surplus funds available in their hands have been invested by them in the for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....estment is the amount created by mutuality but the income earned therefrom from the third party, by which the mutual fund has been expanded, has been contributed by a third party and not by mutuality and, as such, the same cannot be taken into account as the profits and gains of business attributable to providing credit facilities to the members of the respondents. Section 80P of the Income-tax Ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilable after providing such credit facilities are being invested, the income derived therefrom by way of interest should be treated to be interest paid on the mutual fund, thus invested, and as part of the profits and gains of business attributable to providing credit facilities to its members. No doubt, the fund invested is the mutual fund belonging to the members of the Cooperative Societies, bu....