2008 (9) TMI 14 - SC - Income Tax

Co-operative Sugar Mill – amount received by the assessee under Incentive Subsidy Scheme could be utilized only in repayment of term loans so it was not in the course of a trade but was of capital nature, hence not includible in total income – for allowing exemption u/s 80 P(2)(a)(i) in respect of interest received from the members, matter is remanded to examine the Memorandum & Articles of Association, Return of Income & decide whether banking/credit facilities are provided to members or not