TaxTMI 
TaxTMI 
2009 (5) TMI 62
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....el) 2006 (assessment year 2004-05), filed by the assessee (present respondent), are allowed. 2. Heard learned counsel for the parties. 3. The question of law involved in these appeals is as under: "Whether the Income-tax Appellate Tribunal has erred in law in holding that the interest earned by the assessee-co-operative society (engaged in agricultural credit facility), from unutilized funds invested in the banks other than the co-operative bank, as fixed deposit receipts, and Kisan Vikas Patra with post offices, is liable to be deducted under section 80P of the Income-tax Act, 1961?" 4. Brief facts giving rise to these appeals are that the respondent-assessee is a co-operative society engaged in the business of credit facilities to its....
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....these appeals by the Revenue. 5. Before further discussions we think it just and proper to mention the relevant provisions of law contained in section 80P of the Income-tax Act, 1961: "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 total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing, the total income of the assessee: (2) The sums referred to in sub-section (1) shall be the following, namely:- (a) in the case of a co-operative society engaged in - (i) carrying on the business of banking or ....
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....gaged in supplying milk, oil seeds, fruits or vegetables to other co-operative societies or to the Government, or local authorities. Similarly, clause (c) covers the co-operative societies, which are of the nature of consumers' co-operative society. Clause (e) covers the co-operative societies engaged in letting out the godowns and warehouses, and clause (f) covers the urban consumers' societies. Since sums to be deducted under sub-section (1) of section 80P of the Act to the extent of whole of the amount of profits and gains of business attributable to anyone or more of such activities as is applicable to the co-operative societies covered under clause (a) of sub-section (2) of section 80P of the Income-tax Act, 1961, as such we do not fin....