1995 (11) TMI 464 - HC - Income Tax

Summary

Issues:
1. Whether the Tribunal should be directed to refer a question of law to the High Court regarding the exemption of interest received by a co-operative society under section 80P(2)(a)(i) of the IT Act.

Analysis:
The Revenue filed an application under section 256(2) of the IT Act, seeking a direction for the Tribunal to refer a question of law to the High Court. The question pertained to the eligibility of interest received by a co-operative society from non-members for exemption under section 80P(2)(a)(i) of the IT Act. The Revenue argued that a similar question had been referred for other assessment years of the assessee, and thus, the Tribunal should have accepted the application. However, the Tribunal declined to make the reference, stating that the question did not arise from its order. It was noted that in a previous case involving the same assessee, a similar question had been referred and decided in favor of the assessee by the High Court. The judgment highlighted the interpretation of section 80P(2)(a)(i) and the requirement for a society to be engaged in banking or providing credit facilities to its members to qualify for exemption. It emphasized that merely selling goods on credit to members does not constitute providing credit facilities in the nature of banking. The Court concluded that the issue in the present case had already been settled by a previous judgment involving the same assessee for a different assessment year. Consequently, the application under section 256(2) of the IT Act was dismissed, as no new referable question of law was identified due to the prior judgment's resolution of the matter.