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TMI Blog2011 (8) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... This appeal by the assessee is directed against the order of the Commissioner of Income-tax (Appeals), Kolhapur dated 29-1- 2010 for the assessment year 2005-06. 2. The assessee raised the following grounds in its appeal. 1. The ld.CIT(A) erred in observing that the rent received from the excess portion of building in which the society is carrying on its business of providing credit facili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enting out of the property is incidental to the core eligible activity and therefore, the assessee is entitled to the benefit of the deduction u/s 80P in respect of the rental receipts. On the other hand, Ld DR for the revenue relied on the provisions of the Act and the judgment of the Hon ble Hig2h Court of Kerala in the case of Kottayam Co-Operative Land Mortgage Bank Ltd. v. CIT, reported in 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 ITR 443 and that the portions from the head-note of the decision read as under. Section 80P(2) of the Income tax Act, 1961, exempts income of co-operative societies to the extent mentioned therein if the profits or gains are attributable to the activity in which the co-operative society is engaged. The expression attributable to is much wider than the expression derived from and it cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty whether or not they amount to a business, trade or profession in the ordinary sense. Clause(c) of Section 80P(2) is intended to cover receipts from sources other than the actual conduct of the business but attributable to an activity which results in profits or gains. Letting out of surplus space in the building owned and used by the assessee is not such an activity falling under clause (c). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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