2006 (11) TMI 195

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..... g or providing credit facilities within the meaning of section 80P(2)(a)(i)” – held that co-operative society which is engaged in the marketing of raw silk and twisted silk is eligible for the benefit of section 80P(2)(a)(i) in respect of the interest received from its members for supplying the materials on credit – revenue’s appeal dismissed - 120 of 2004 - - - Dated:- 29-11-2006 - P. D. DINAK .....

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..... g Officer on the ground that the activity of the assessee procuring and supplying raw silk and twisted silk on credit to its members cannot be considered as "carrying on the business of banking or providing credit facilities within the meaning of section 80P(2)(a)(i)". On appeal by the assessee, the Commissioner of Income-tax (Appeals) allowed the assessee's claim following the decision of the Tri .....

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..... court dated December 12, 2005, made in T. C. No. 54 of 2001 ( CIT v. Salem Co-operative Sugar Mills Ltd. [2006] 286 ITR 635 (Mad), wherein the Division Bench of this court, taking note that the prime object of the assessee therein is running a sugar mill, and that the object clause or/and the business activities of the assessee therein is also granting loans and advances to the members, held t .....

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