TMI Blog2007 (4) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of training cost 3,17,016 (iii) Security forfeiture 3,141 5. The Assessing Officer held that the aforesaid receipts aggregating Rs. 3,40,534 did not arise from banking business and as such were not liable to be deducted under section 80P(a)(i) of the Income-tax Act, 1961, On appeal the learned Commissioner of Income-tax (Appeals) deleted the aforesaid addition to the total income of the assessee. In appeal before the Tribunal, it was pointed out on behalf of the Department that in respect of items at (i) and (iii) above, the matter is covered against the assessee and in favour of the Department by the order of the Tribunal dated February 6, 1992, for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties in connection with which it has to engage persons. The employees are required to be sent for training and further under the terms of the contract, if any person leaves the services without completing the term or without complying with the provisions of the notice period, the security is forfeited. These amounts are forfeited by the bank in the course of its normal activities as without the employees, the bank cannot carry out its business. He further submitted that under clause (a) of sub-section (2) of section 80P of the Act, the income, which the applicant being the co-operative society, derives is attributable to the business of banking, is exempt from tax. The view of the Tribunal to the contrary is, therefore, clearly erroneous un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 under section 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] 113 ITR 84, has held that the expression attributed has to be given a very wide meaning. 11. We also find that in the case of CIT v. Ahmednagar District Central Co- operative Bank Ltd. [2003] 264 ITR 38, the Bombay High Court has held that the commission earned by a co-operative bank from Maharashtra State Ele ..... X X X X Extracts X X X X X X X X Extracts X X X X
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