9911796707
TMI Blog2000 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was eligible for deduction under section 80P. The assessee's income was computed under three heads, income from house property, business income and income from other sources. Income from these three sources was calculated as : Rs. I. Income from house property 4,69,532 11. Business income: (a) From fertiliser section as returned by the assessee (eligible for deduction under section 80P) 16,06,690 (b) From pesticide formulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest from Arcanut Co-operative Society 5,000 7. Miscellaneous receipts 9,971 -------- 8,82,896 -------- Total income of the assessee from the three sources was computed as : Rs. Business income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax, Karnataka (for short, "the revisional authority"), being of the opinion that the order of the assessing authority was erroneous and prejudicial to the interests of the Revenue issued notice under section 263 of the Act. The assessee was afforded an opportunity of hearing. The revisional authority came to the conclusion that the relief given under section 80P was excessive. In paragraph 2 of its order the revisional authority worked out the eligible deductions. From the aggregate of the income from the fertiliser division, pesticide division and income from other sources which were eligible for relief under section 80P, he deducted the loss from general section, depredation debited from pesticide trading -account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee filed an application under section 256(l) before the Tribunal requesting it to refer the following two questions of law to this court for its opinion along with the statement of case : "l. Whether, on the facts, the Tribunal was right in holding that the relief under section 80P(2) of the Act was to be quantified only after the loss out of other business units was set off ? 2. Whether, on the facts, the Tribunal was justified in not holding that the quantification of the relief under section 80P(2) of the Act was with reference to the profit of each of the units belonging to the applicant to which the provisions of section 80P attracted ?" The Tribunal on being satisfied that the two questions claimed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking any deduction under this Chapter or under section 280-O". Section 80AB was introduced in Chapter VI-A by the Finance (No. 2) Act, 1980, with effect from April 1, 1981. The same reads as under : "Where any deduction is required to be made or allowed under any section (except section 80M) included in this Chapter under the heading 'C.-Deductions in respect of certain incomes in respect of any income of the nature specified in that section which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, for the purpose of computing the deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act (before making any dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooperative society from its investments with any other co-operative society, the whole of such income ' ; . . ." If a cooperative society carries on certain activities the income from which is exempted and also certain activities income from which is not exempted, the profits and gains attributable to exempted activities shall enjoy the exemption and those attributable to the non-exempted activities shall be taxed. The society apart from business income had income from house property and other sources which did not qualify for the exemptions under section 80P. Losses in the general section have to be deducted from the aggregate of income falling under the head "Business income". After deducting the loss of Rs. 17,91,393 of the general se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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