TMI Blog2011 (8) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (2009 -TMI - 34471 - SUPREME COURT ) has held that connotations of the words 'derived from' is narrower as compared to that of the phrase 'attributable to'. The Apex Court pointed out that when the Parliament uses the expression 'derived from', it intended to cover sources which have a direct nexus to the business activities. - Deduction u/s 80P allowed. - 478 to 481 of 2005 - - - Dated:- 22-8-2011 - Mrs.Justice CHITRA VENKATARAMAN, Mr.Justice M.JAICHANDREN, JJ. For Appellants : Mr.J.Naresh Kumar JUDGMENT CHITRA VENKATARAMAN, J. The Revenue is on appeal as against the common order passed by the Income Tax Appellate Tribunal relating to assessment years 1993-94 to 1996-97. The following common substantial quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Section 80P(2) of the Income Tax Act. The assessee filed a petition under Section 154 of the Income Tax Act for rectification of the order passed under Section 143(3) read with 250 of the Income Tax Act, by placing reliance on the decision of the Apex Court reported in 251 ITR 13 CIT v. KARNATAKA STATE CO-OPERATIVE APEX BANK LIMITED and 251 ITR 194 CIT v. KARNATAKA STATE CO-OPERATIVE APEX BANK LIMITED. The said claim was however rejected by the Officer on the ground that the decision referred to would not be of any help to the assessee since there were conflicting decisions. 3. The assessee filed appeals before the Commissioner of Income Tax (Appeals), who dismissed the assessee's plea holding that the issue was debatable one and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, applying the decision of the Supreme court reported in KARNATAKA CO-OPERATIVE APEX BANK LIMITED [251 ITR 13] , the Tribunal held that the interest income derived on its investments was exempt under Section 80P(2) of the Act since the said investments were made only to protect the business interest. Aggrieved by the same, the Revenue is on appeals before this Court. 5. As far as the first question of law as to the invoking of jurisdiction under Section 154 of the Act is concerned, learned standing counsel stated before this Court that in the light of the decision of the Apex Court reported in 251 ITR 13 KARNATAKA CO-OPERATIVE APEX BANK LIMITED, there cannot be any dispute for rectifying the mistake apparent on the face of the order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the activities so specified), so much of its profits and gains attributable to such activities as [does not exceed, - (i) where such co-operative society is a consumers' co-operative society, [one hundred] thousand rupees, and (ii) in any other case, [fifty] thousand rupees, Explanation. In this clause, "consumers' co-operative society' means a society for the benefit of the consumers;]. " 8. Thus, in contra distinction to the provisions of deductions, restricting the claim of deduction to the income 'derived' from the activity specified therein, having direct nexus to the activity or the business therein, section 80P of the Income Tax Act provides for the deductions in respect of profits and gains 'attributable to' the activit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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