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TMI Blog1984 (1) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank and the administrative offices. Surplus space in the building was let out. The assessee returned a net amount of Rs. 29,139 for the asst. yr. 1978-79 and Rs. 20,564 for the asst. yr. 1979-80 by way of income from property and claimed out of the same a deduction of Rs. 20,000 for each assessment year under s. 80P(2)(c). 4. Sec. 80P relates to deduction in respect of income of co-operative societies. Under cl (a) of sub-s. (2) profits and gains attributable to the activities enumerated in the clause are totally exempted. Similarly, under cl. (b) the profits and gains of business attributable to the supply of milk in certain cases an totally exempted. Then comes cl (c) which reads thus: "(c) in the case of co-operative society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-s. (2) of s. 80P use the word income with reference to income arising from dividends, letting out of godowns interest on securities etc., This clearly indicates that the words 'profits and gains' used in cls. (a) to (c) related to an income from business activity. 6. As against this, it is contended by the ld. Representative for the assessee that although it is a fact that the words profits and gains have been used in cl. (c) they are used in conjunction with the word activity and that this clause does not use the expression profits and gains of business as in cls. (a)and (b). It was, therefore, argued that it is not correct to say that cl.(c) refers to only income from business activity. On the other hand, according to the learned re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ributable to are much wider than the expression derived from. The ratio of the decision is that although the interest income is not actually derived form the activity of supplying sugarcane, it is attributable to the activity of supplying sugarcane. In the present case, even assuming that the letting out of the surplus space by the assessee is an activity, we are unable to hold that the proceeds therefrom can be called profits and gains. "In the case before the Allahabad High Court referred to above, the activity was supplying sugarcane and it was clear that the receipts thereof will definitely be profits and gains. The same cannot be said with regard to rent received from letting out building. Clauses (a) and (b) clearly refer to profits a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the closing portion is to 'any income from house property chargeable under s. 22.' Sec. 80P therefore, takes notice of income from house property. It not only uses the word income in connection with the same but specifically deal with the same under cl. (f). Income from house property will be exempt only where the gross total income of the society does not exceed Rs. 20,000. In view of this, we are of the view that the income of the assessee from letting out portion of the building is only income from house property and that it cannot be termed as profits and gains of an activity contemplated by cl.(c). 8. We are also unable to accept the alternative contention raised for the first time in this appeal by the learned representative fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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