1980 (9) TMI 32

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....this reference under s. 256(1) of the I. T. Act, 1961 (hereinafter referred to as " the Act "), the income-tax Tribunal has referred the following questions to this court for its opinion: " 1. Whether, on the facts and in the circumstances of the case, the income derived from sale of goods on credit by the assessee to its members amounts to providing credit facilities within the meaning of sect....

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....d that it was providing credit facilities to its members and hence its income arising out of credit sales was exempt. The contention was rejected by the ITO. On appeal, the AAC upheld the rejection by the ITO. On further appeal, the Tribunal found that the activity of selling consumer goods on credit was not covered within the scope of cl. (2)(a)(i) of s. 80P. The Tribunal further found that no in....

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....in (i) carrying on the business of banking or providing credit facilities to its members, or ...... the whole of the amount of profits and gains of business attributable to any one or more of such activities......" From a persual of the aforesaid provision it is clear that what is liable to be deducted from the income of co-operative societies is the amount of profits and gains of business a....