9911796707
TMI Blog2002 (7) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------ 1995-96 1996-97 ----------------------------------------------------------------- (i) Income from house property 87,294 98,318 (ii) Income from other sources 4,10,980 5,82,394 -------- --------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative and perused the intimation. The Assessing Officer has rejected the appellant's claim for deduction under section SOP for a sum of Rs. 20,000 for each year, by invoking the provisions of 80P(2)(f). The appellant has asked deduction under section 80P stating that its case falls under the provisions of section 80P(2)(c)(ii). Section 80P(2)(f) reads as under: 'In the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities or any income from house property chargeable under section 22.' From a careful reading of the above section it is understood that the said section deals specifically about the treatment to be given to the Income from House Property relating to co-operative societies. The said section excludes Housing Societies from the benefit of availing exemption from their property incomes, Since, the appellant is a Housing Society, the Assessing Officer's action in refusing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of its members; or (iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; or (v) the processing, without the aid of power, of the agricultural produce of its members; or (vi) the collective disposal of the labour of its members; or (vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members, the whole of the amount of profits and gains of business attributable to any one or more of such activities. Provided that in the case of a co-operative society falling under sub-clause (vi) or sub-clause (vii), the rule and bylaws of the society restrict the voting rights to the following classes of its members, namely:- (1) the individuals who contribute their labour, or, as the case may be carry on the fishing or allied activities; (2) the co-operative credit societies which provide financial assistance to the society; (3) the State Government; (b) in the case of a co-operative society, being a primary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore of such activities" in section 80P(2)(a), and there is reference to "profits and gains of such business" in section 80P(2)(b), whereas the word 'business' is conspicuous by its absence in section 80P(2)(c). What is referred to in section 80P(2)(c) is, as already noted above, only "profits and gains attributable to such activities", which cannot possibly be equated to the expression "profits and gains of such business" used in section 80P(2)(b) or similar expression used in section 5. Normally, profits and gains refer to the net income from business or profession. The learned author in Sampath Iyengar's Law of Income-tax (9th Edition) at page 477 of Vol. I, has observed that the term 'income' is a wider concept than the term 'profits and gains' because 'profits and gains' refers to the net proceeds, whereas 'income relates to incomings without regard to outgoings'. He further proceeded to observe at the same page as under- "'Profits and gains' are the resultant from the carrying on of a business or the exercise of a profession or vocation. The use of the expression 'profits and gains' therefore is inappropriate to any other head of income, and, accordingly, 'profits and gains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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