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TMI Blog2022 (9) TMI 1597X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals as separate orders, reversed the orders passed by the Tribunal and allowed the appeals of the Revenue. The assessees preferred appeals before Hon'ble Supreme Court and filed certain additional documents and Hon'ble Supreme Court set aside the issue to the Tribunal for fresh adjudication. 3. Learned counsel for the assessee submitted that earlier the Department had filed appeals on two issues relating to deduction u/s 80P(2) of the Act and relating to deposit of provident fund. However, against the orders of the Tribunal, the Revenue took before Hon'ble High Court the issue of deduction u/s 80P of the Act only. Learned counsel for the assessee, in view of the order of Hon'ble Supreme Court, submitted that the Hon'ble Tribunal has to decide the issue afresh after ignoring the order already passed by the Tribunal and Hon'ble Allahabad High Court. 4. Explaining the facts of the cases, Learned counsel for the assessee submitted that the assessees are cooperative societies engaged in procurement of cane for the sugar mills and ensuring the payments to farmers by sugar mills and further these societies are engaged in providing better quality of seeds, fert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is placed at pages 107 to 115 of the paper book. Learned counsel for the assessee, reading from the findings of such order, submitted that Hon'ble High Court has clearly held that the expression 'attributable to' is much wider than the expression 'derived from' and it covers receipt from sources other than the actual conduct of the business of the assessee and held that where a cooperative society invested profits in accordance with statutory requirement for carrying on the business of sugarcane, the interest earned thereon would be attributable to the carrying on of the business. It was submitted that this judgment of Hon'ble Allahabad High Court was not cited before Hon'ble High Court whereby the Hon'ble High Court had reversed the findings of the Tribunal after relying on the judgment of Hon'ble Supreme Court in the case of Totgars Co-operative Sale Society Limited vs. Pr. CIT 322 ITR 283. It was submitted that the facts and circumstances of the present cases are distinguishable from the facts and circumstances of the case of Totgars Co-operative Sale Society Limited as that society was engaged in the sale of products to its members and that society after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court by holding as under: "Having heard learned counsel for the parties, we are inclined to remit the matters to the Income Tax Appellate Tribunal to decide afresh the appeals relating to the assessment years in question. We have passed the order in view of lack of clarity on facts and the exemption clause under sub-section 2 to Section 80P of the Income Tax Act, 1961 relied upon by the assessee, and considered by authorities and the Tribunal. Learned senior counsel appearing for the appellants has submitted that they would like to place on record additional documents, including the statutory rules, which may have bearing on the nature of income, and entitlement to exemption under Section 80P. We permit the appellants to file the said documents, including the statutory rules, within a period of four weeks from today. The respondent i.e. Revenue would be entitled to file additional documents and also place written reply on record within a period of eight weeks from the date a copy of the documents is furnished. Accordingly, we would set aside the impugned order passed by the High Court and the Tribunal with the request that the Tribunal would decide the issue of exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls." 7.2 Hon'ble Allahabad High Court in the case of CIT vs. Krishak Sahkari Ganna Samiti Ltd. [2002] 258 ITR 594 (Alld) has held that the investment by co-operative society in the form of Government securities, equivalent to 25% of its profit, was the requirement of keeping the same as statutory reserve therefore, has held that such earning of interest was attributable to the activity carried on by the assessee. The relevant findings of Hon'ble Allahabad High Court are reproduced below: "Clause (c) of Section 80-P(2) exempts income of cooperative societies to the extent mentioned in that section if the profits or gains are 'attributable' to the activity in which the cooperative society is engaged. The findings are that under statutory provisions the cooperative society is bound to invest 25% of its profits in Government securities. The assessee complied with this provision. In the process, it earned interest on these investments. The question is whether such profits or gains are attributable to the activity of supplying sugarcane carried on by the assessee. In Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 1TR 84 the Supreme Court held that the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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