TaxTMI 
TaxTMI 
2005 (12) TMI 215
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....f HBA/Staff warm clothing loan/overdue interest, interest received on NPA and Security fee, as income incidental to the banking business as the income under these heads is not directly derived from banking business and will not be allowable deduction under section 80(P)(2)(a)(i)." 3. We have heard the parties and perused the records. The relevant facts briefly stated are that the assessee is a co-operative society registered under the Co-operative Societies Act. The society is engaged in lending moneys to its members and had claimed exemption under section 80P(2)(a)(i) of the Income-tax Act, 1961. The Assessing Officer while making the assessment under section 143(3), categorized the income of the assessee under two heads. The interest inc....
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....and dismiss the ground of appeal raised by the revenue in regard to the interest received from staff on account of vehicle loans, staff HBA and staff warm clothing loans. 6. In regard to the interest received on account of non-performing assets and security fee, the CIT(A) has pointed out that assessee had divided interest received from members into two categories-first category is the interest received from members regularly and the other category is interest not received regularly as per instalments. The second category of interest is transferred to overdue interest. The CIT(A) has held that there is no difference between both the type of interests received from members. The CIT(A) has accepted the contention on behalf of the assessee th....
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....80P(2)(a)(i) reads as under:- "(a) in the case of a co-operative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members, or........ (ii) to (vi) ......... the whole of the amount of profits and gains of business attributable to any one or more of such activities." It is evident from a plain language of section 80P(2)(a)(i) that deduction is permissible to the assessee in respect of profits and gains attributable to the business of banking or providing credit facilities to its members. In the present case, the cooperative society is engaged in the business of providing credit facilities to its members. Therefore, any income, which is attributable to the aforementioned business of the as....
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.... it is also part of the obligation of the electricity company as licensee that the sums appropriated to the contingencies reserve are invested in securities authorized under the Indian Trusts Act, 1882. Referring to its own decision in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT, [1978] 113 ITR 84 (SC), Their Lordships further held, "Since the expression of wider import, namely, "attributable to" has been used, the Legislature intended to cover receipts from sources other than the actual conduct of the business of generation and distribution of electricity. This would mean that it is not necessary that the income should have been earned from the actual conduct of the business of generation and distribution of electricity. ....