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TMI Blog2019 (1) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... r subsection (1). The interest income herein was received from credit facilities extended to the employee and the employee of a member, for personal purposes. This would not fall within sub-clause (i) of Clause (a) of Section 80P of the Act. Further contention raised on the basis of the decision of Income Tax v. Gulshan Mercantile Urban Co-operative Bank Ltd. [2013 (1) TMI 85 - ALLAHABAD HIGH COURT]. Therein the interest derived was from the Fixed Deposits maintained out of surplus funds. The decision cannot have application in the present case especially by reason of the dictum in Kerala State Co-operative Marketing Federation Ltd. - Decided in favour of the Revenue and against the assessee - ITA. No. 117 of 2012 - - - Dated:- 18-12-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to in subsection (1) shall be the following, namely:- ( 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.... The whole of the amount of profits and gains of business attributable to any one or more of such activities; xxx xxx xxx 4. The learned Counsel appearing for the assessee would first rely on the decision of the Hon'ble Supreme Court in Cambay Electric Supply Industrial Co. Ltd. v. Commissioner of Income Tax [(1978) 113 ITR 84 (SC), wherein the Hon'ble Supreme Court had considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd gains being attributable to the specific activity delineated under sub-clause (a). The credit facilities provided has to be to its members for the interest income earned, to be granted a deduction under Section 80P of the Act. Otherwise there was no requirement to specify the specific business activities of the societies; the deduction being only to the income arising therefrom. 6. We also refer to the decision of the Hon'ble Supreme Court in Kerala State Cooperative Marketing Federation Ltd. v. Commissioner of Income Tax [(1998) 231 ITR 814 (SC)] and the following paragraphs: The classes of societies covered by Section 80-P of the Act are as follows: ( a) engaged in business of banking and providing credit facilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rage, transportation, processing and other commercial activities such as standardisation, financing, marketing intelligence etc. Such activities can be carried on by an apex society rather than a primary society. (underlining by us for emphasis) 7. Hence what has to be specifically looked at is whether the activity from which the income earned fell within any of the clauses under subsection (1). The interest income herein was received from credit facilities extended to the employee and the employee of a member, for personal purposes. This would not fall within sub-clause (i) of Clause (a) of Section 80P of the Act. 8. A further contention was raised on the basis of the decision of the Allahabad High court in Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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