TMI Blog2011 (3) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, therefore, was not entitled to the benefits of section 80P(2)(a)(i) of the Act - Against assessee. - ITA NO 272/09 - - - Dated:- 28-3-2011 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL, JJ. Judgment: Ajay Kumar Mittal J.- 1. This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), has been filed by the assessee against the order dated November 26, 2008, passed by the Income-tax Appellate Tribunal Chandigarh Bench "B", Chandigarh (in short "the Tribunal"), in Miscellaneous Appeal No. 233/Chandi/2006 arising out of I.T. A. No. 1068/Chandi/2005, relating to the assessment year 2002-03. 2. The appeal was admitted on July 17, 2009 to consider the following substantial question of law for determination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the working capital advances do not qualify the test of "investments" as enshrined in section 80P(2)(d) of the Act, and the deduction claimed by the assessee under the said provision could not be allowed. The Assessing Officer thus, ordered that the appellant-federation was assessable at Rs. 4,98,64,196. It was unambiguously observed that the assessee would not be entitled to deduction under the provisions of section 80P(2)(d) of the Act on account of interest on working capital to the milk unions. 5. The assessee carried appeal before the Commissioner of Income-tax (Appeals) (hereinafter referred to as "the CIT(A)"). The assessee chal-lenged the disallowance of deduction under section 80P(2)(d) of the Act. It was also claimed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scellaneous Application No. 233/Chandi/2006 dated March 21, 2007 before the Tribunal claiming that ground No. 3 relating to deduction under section 80P(2)(a)(i) of the Act in the memo of appeal had not been adjudicated upon while passing the order on April 27, 2006. The Tribunal vide order dated November 26, 2008 adjudicated the said ground of appeal and held that the interest income in question was not eligible for deduction under section 80P(2)(a)(i) of the Act. 7. This is how the assessee is in appeal before us raising the substantial question of law as noticed earlier. 8. We have heard learned counsel for the parties and have perused the record. 9. The Tribunal while dismissing the appeal of the assessee recorded the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the assessee submitted that the main business of the assessee included providing working capital finance to the member milk unions and, therefore, the said activity would constitute an activity of providing credit facilities within the meaning of section 80P(2)(a)(i) of the Act.8. We have considered the above position and are of the opinion that there is no dispute that the assessee-society is a co-operative society engaged in the procuring, processing and marketing of milk and milk products of its co-operative member society. It has been providing credit facility to its members. Primarily the credit facility being provided relates to the outstanding dues to the assessee of the milk unions. In this connection, a reference made by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessing and marketing of milk and milk products of its members societies. The credit facility which was provided to its members was relating to the outstanding dues to the assessee of the milk unions. It also recorded that the credit facility which was extended by the assessee to its members was ancillary to its main object and it was not carrying on the business of banking or providing credit facilities to its members and, therefore, was not entitled to the benefits of section 80P(2)(a)(i) of the Act. Learned counsel for the assessee was unable to point out any illegality or perversity in the said findings recorded by the Tribunal which may warrant interference by this court. Accordingly, the finding on the merits in the appeal the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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