TaxTMI 
TaxTMI 
2009 (2) TMI 60
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..... Whether, in the facts and circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 ? 2. Whether, in the facts and circumstances of the case, the Income- tax Appellate Tribunal was right in holding that the receipt not attributable to the business of the assessee should be included in the business income for computing the allowance under section 32AB of the Income-tax Act, 1961 ?" 2. The facts, as culled out from the statement of facts in the memorandum of grounds of appeal, are as follows: 3. The assessee is a co-operative society engaged in the business of manufacture and sale of sugar. For the assessment year 1990-91....
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....ction only when the chief source of income is from the business of banking or provision of credit facilities. With regard to the reduction of the deduction claimed under section 32AB, the Commissioner of Income-tax (Appeals) did not agree with the contention of the assessee that all the items deducted from the income by the Assessing Officer were part of the business profits of the assessee and partly granted the relief under section 32AB. 6. Aggrieved by the order of the Commissioner of Income-tax (Appeals), the assessee filed a second appeal before the Income-tax Appellate Tribunal, Chennai Bench. The Tribunal allowed the assessee's claim under section 80P(2) (a) (i) following its order in Madurantakam Co-operative Sugar Mills Ltd. mad....
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....icultural Producers Co-operative Society Ltd., and Modem Engineers Constructions Co-operative Society Ltd. Under section 80P(1), deduction in respect of income of co-operative societies is provided for. Under section 80P(1), where the gross total income of a co-operative society includes any income referred to in sub-section (2) then the sums specified in sub-section (2) shall be deducted from the gross total income to arrive at the total income of the assessee-society. In order to earn exemption under section 80P(2) a co-operative society must prove that it had engaged itself in carrying on any of the several businesses referred to in sub-section (2). In that connection, it is important to note that under sub-section (2), in the context of....
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....antile Bank Ltd. reported in [2002] 255 ITR 205, wherein the question of law taken up for consideration was as to whether, in the facts and circumstances of the case, the Tribunal is correct in law in holding that the deduction under section 32AB of the Income-tax Act, 1961, is to be allowed at 20 per cent. of the book profit of the undertaking as a whole computed in accordance with Schedule VI to the Companies Act, and not on the business income computed as per the provisions of the Income-tax Act ? 14. The Division Bench of this court, after considering the entire provisions of section 32AB, has ultimately held as follows: "Section 32AB provides a benefit to the assessee. The benefit so provided is an incentive to an assessee, who d....
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....ection 32AB(1) or (2). The computation under the Income-tax Act is relevant after the ascertainment of the amount of the deposit and the twenty per cent. of the profits of the business calculated in accordance with section 32AB(3), and the amount to be allowed in the computation under the Income-tax Act is the lower of the two figures and the deduction is to be allowed in the manner provided in section 32AB(1) of the Act." 15. In the case of Carborandum Universal Ltd. v. CIT reported in [2004] 265 ITR 372 (Mad), the Division Bench of this court, having regard to the nature of the relief granted under section 32AB and having regard to the language employed in the section has observed as follows (headnote) : "The calculations required t....