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2019 (1) TMI 1138 - KERALA HIGH COURTEntitlement to deduction u/s 80P - amplitude to the words “attributable to the business” - specific business activities of the societies - interest derived from a credit facility extended to one of its employees and the employee of one of its members - whether the interest earned by the assessee to be out of credit facilities extended from the surplus funds of the business of the assessee - Held that:- 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. 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
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