TMI Blog2009 (5) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... Vashistha for the appellants. Gopal Narain for the respondents. JUDGMENT The judgment of the court was delivered by PRAFULLA C. PANT J. - These two appeals are directed against the common judgment and order dated February 9, 2007, passed by the Income- tax Appellate Tribunal (hereinafter referred as "the ITAT"), Delhi Bench "SMC", Delhi, whereby Income-tax Appeal No. 3758 (Del) 2006 (assessment year 2003-04) and Income Appeal No. 3759 (Del) 2006 (assessment year 2004-05), filed by the assessee (present respondent), are allowed. 2. Heard learned counsel for the parties. 3. The question of law involved in these appeals is as under: "Whether the Income-tax Appellate Tribunal has erred in law in holding that the interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Autorickshaw Drivers' Co-operative Society Ltd. [1983] 143 ITR 981 (Mad). Aggrieved by the orders of the Commissioner of Income-tax (Appeals), the respondent-assessee, Iqbalpur Co-operative Cane Development Union Ltd., filed Income-tax Appeal Nos. 3758 and 3759 (Del) 2006 (for the assessment years 2003-04 and 2004-05) before the Income-tax Appellate Tribunal, Delhi. The same are allowed by the said authority; vide the impugned order dated February 9, 2007. Hence, these appeals by the Revenue. 5. Before further discussions we think it just and proper to mention the relevant provisions of law contained in section 80P of the Income-tax Act, 1961: "80P. Deduction in respect of income of co-operative societies.- (1) Where, in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, clause (d) is an independent clause of clause (a). The co-operative society, which is not engaged in the work of the nature of encouraging the agricultural produce, can claim deduction on the interest or dividends only if the investments are made with any other co-operative society. Each category contained in clauses (a), (b), (c) and (d) cover different kinds of co-operative societies, for example, co-operative society covered under clause (b) are the primary societies engaged in supplying milk, oil seeds, fruits or vegetables to other co-operative societies or to the Government, or local authorities. Similarly, clause (c) covers the co-operative societies, which are of the nature of consumers' co-operative society. Clause (e) co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em to the members on hire-purchase terms. Such activity is not covered under clause (a) of sub-section (2) of section 80P of the Act. As such, the principle of law laid down in the said case is not applicable to the present case as the assessee in this case is co-operative cane development union engaged not only in credit facility but also in marketing of agricultural produce grown by its members and providing loans for purchase of agricultural implements, seeds for agriculture For the same reason the another case law CIT v. Modern Engineering Construction Co-operative Society Ltd. [2008] 306 ITR 10 (SC) is of no help to the appellants, for in the said case also the society was Modern Engineering Construction Co-operative Society, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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