9911796707
TMI Blog1985 (9) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... ursed to them for purchasing looms. The entire interest due from the members from 1st July 1969 to 31st March 1974 was credited by them to the accounts of the accounting year under consideration. A note to the above effect was given by the accountants in the accounts which was filed by the assessee before the ITO. The total amount of interest thus oredited to the accounts for the aforementioned period was Rs. 17,160. The aforesaid amount was brought to tax in the hands of the assessee all its income. The assessee s plea that the said interest was exempt from tax in terms of sub-cl. (1) of cl. (a) of sub-s. (2) of s. 80P of the IT Act was not accepted by the ITO. The ld. AAC also did not accept the above plea. The assessee has therefore, app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of CIT vs. Madras Auto Riksha Drivers Cooperative Society (1983) 37 CTR (Mad) 332 : (1983) 143 ITR 981 (Mad). The alternative plea of the assessee was also resisted on the basis of the ratio of the decision of their Lordships of the Hon ble Madhya Pradesh High Court in the case of CIT vs. His Highness Maharaja Yeshwantrao Powar (1981) 127 ITR 650 (MP). 4. We have considered the facts of the present case and have examined the rival submission. We have also gone through the authorities relied on by either sickes. There is no merit whatsoever in the assessee s submission that the income of the assessee society is eligible for exemption in terms of sub-cl. (i) of cl. (a) of sub-s. (2) of s. 80P. The society does not extend credit f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee at any earlier, stage. The argument is arising directly from the admitted facts of the case and it goes to the root of the matter. We cannot, therefore, accept the Departmental contention that the assessee should not be allowed to raise the above plea before us for the first time. The said plea has merit and, therefore, the income from interest which could be brought to tax this year would be Rs. 2,710 only as has been given in the chart filed before us at page 8 of the assessee s paper books. 6. The reliance of the Revenue on he decision of their Lordships of the Madhya Pradesh High Court in the case of CIT vs. His Highness Maharaja Yeshwantrao Pawer, is entirely misplaced because the facts in that case were altogether different. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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