TMI Blog1986 (6) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the head `house property'. In addition to this, the assessee had income from banking business and income from other sources being dividends from M/s Industrial Finance Corporation Ltd. The assessee claimed exemption in respect of its entire income under s. 80P of the Act. The ITO allowed the exemption in respect of its entire income under s. 80P of the Act. The ITO allowed exemption in respect to income from banking business under s. 80P(1). In respect of the income from house property chargeable under s. 22, he was of the view that inasmuch as the gross total income of the assessee exceeded ₹ 20,000 the assessee was not entitled to any exemption under s. 80P(2)(f). As regards the dividend income, he denied exemption under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of s. 80P(2)(f) or under s. 80P(2)(c) record with s. 80P(2)(a)(i). He emphasized that the expression `attributable to' used in s. 80P is much is much wider than the expression `derived from' and it covers receipts from sources other than the actual conduct of the business of the assessee. For this proposition, he relied on the decision of the Allahabad High Court in CIT vs. Co-operative Cane Development Union Ltd., (1979) 10 CTR (All) 282 : (1979) 118 ITR 770 (All). He submitted that the assessee had only one building for its use and factually 2/3 of the building is being used for the business of the assessee and only 1/3 is being let out. Though the income from the let out portion of the building is assessed under `house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of a co-operative society having a number of buildings which are let out or of a co-operative society letting out its godowns. Before the ITO, the assessee staked its claim under s. 80P(2) (f) and before the CIT(A), the assessee urged its claim under s. 80P(2)(c). Before us, it was argued that if the claim is not allowable under s. 80P(2)(f), at least it should be considered under s. 80P(2)(a)(i) r/w s. 80P (2) (c). In CIT vs. Mahalakshmi Textile Mills Ltd. (1967) 66 ITR 710 (SC) the Supreme Court held that all questions of law or fact, which relate all questions of law or fact, which relate all questions of law or fact, which relate to the assessment year, may be raised before the Tribunal and that if, for reasons recorded by the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the 1961 Act, classified taxable income under different heads only for purposes of computation of net income of the assessee. Their Lordships held that whether a particular income is part of income from business is to be decided, not on the basis of provisions of s. 6, but on commercial principles. In view of these, we allow the appeal under s. 80P (2) (a) (i). 7. Even the alternative submission of the appellant for exemption under s. 80P (2) (c) has to be accepted. It is not in dispute that the rental income of ₹ 11,825 for 1980-81 the rental income of ₹ 11,825 for 1980-81 and ₹ 11,877 for 1981-82 is attributable to activities other than those specified in s. 80P (2)(c). The ld. counsel is right in his plea that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t exceed ₹ 20,000. IN the case before us, though the claim was made by the assessee in respect of house property income under s. 80P (2) (f), corresponding to old s. 80 (v), the plea was virtually given up before us by the ld. counsel for the assessee. He confined his submissions to s. 80P (2) (a) r/w s. 80P (2) (c) of the IT Act. Besides, the Andhra Pradesh High Court decision was given in the context of investments of the society's surplus funds in government securities. In the case before us, it is the very building of the society in which its business is being carried on which is involved and what has happened is only a part of the building, that too only 1/3 of the building, was let out. It is our considered view that the ren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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