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2007 (4) TMI 212 - HC - Income TaxDeduction u/s 80P(a)(i) - Income earned by co-operative society which is not attributable to its business of banking or providing credit facilities to its members - Eligible to deduction u/s 80P? - HELD THAT:- It is not the case of the Revenue that apart from carrying on the business of banking, the applicant is also running the training institute for training of persons in the banking industry for providing services of trained persons to other banks. Thus, there is no doubt in our mind that the entire income in respect of the aforesaid activities does form part and is attributable to the carrying on of the business of banking and consequently, exempt u/s 80P(2)(a) of the Act. It may be mentioned here that the apex court in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT[1978 (4) TMI 1 - SUPREME COURT], has held that the expression attributed has to be given a very wide meaning. We also find that in the case of CIT v. Ahmednagar District Central Cooperative Bank Ltd.[2003 (7) TMI 50 - BOMBAY HIGH COURT], the Bombay High Court has held that the commission earned by a co-operative bank from Maharashtra State Electricity Board for collecting electricity bills from the public on their behalf is attributed to the business of banking and, therefore, exempt u/s 80(P)(2)(i) of the Act. Thus, we answer the above question referred to us in the negative, i.e., in favour of the assessee and against the Revenue.
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