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TMI Blog1980 (9) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as " the Act "), the income-tax Tribunal has referred the following questions to this court for its opinion: " 1. Whether, on the facts and in the circumstances of the case, the income derived from sale of goods on credit by the assessee to its members amounts to providing credit facilities within the meaning of section 80P(2)(a)(i) of the Income-tax Act, and whether such income is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its income arising out of credit sales was exempt. The contention was rejected by the ITO. On appeal, the AAC upheld the rejection by the ITO. On further appeal, the Tribunal found that the activity of selling consumer goods on credit was not covered within the scope of cl. (2)(a)(i) of s. 80P. The Tribunal further found that no income whatsoever was derived by the assessee from its activity of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilities to its members, or ...... the whole of the amount of profits and gains of business attributable to any one or more of such activities......" From a persual of the aforesaid provision it is clear that what is liable to be deducted from the income of co-operative societies is the amount of profits and gains of business attributable to the activities referred to in sub-cls. (i) to (vii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the instant case in view of the finding of the Tribunal that no part of the income of the assessee was attributable to the activity of the assessee of selling goods on credit. Therefore, our answer to the question framed as above is in the affirmative and against the assessee. Learned counsel for the parties conceded that question No. 2, referred by the Tribunal, did not really arise in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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