TMI Blog1975 (4) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal the income from printing press was reduced to Rs. 14,381 but the assessee's plea that it was exempt from tax under section 81(i)(a) of the Income-tax Act, 1961, was not accepted. On second appeal the Income-tax Appellate Tribunal accepted the assessee's claim that income from printing press was exempt under section 81(i)(a) of the Act. The Tribunal further held that in any case the income being less than Rs. 15,000 was exempt under section 81(ii). The Commissioner of Income-tax is aggrieved and at his instance the Tribunal has made this reference for the opinion of this court on the following two questions : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng milk raised by its members to a federal milk co-operative society : Provided that, in the case of a co-operative society which is also engaged in activities other than those mentioned in this clause, nothing contained herein shall apply to that part of its profits and gains as is attributable to such activities and as exceeds fifteen thousand rupees ; (ii) in respect of so much of the profits and gains of business carried on by it as does not exceed fifteen thousand rupees, if it is a co-operative society other than a co-operative society referred to in clause (i) ; ........" The Tribunal has found that the assessee runs a printing press in order to supply to its members printed registers and forms. These articles are supplied to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities must be the chief source of income. A person who advances loans or supplies goods on credit in connection with and in the course of some other business of manufacture or purchase or sale of goods, etc., cannot be said to be carrying on the business of banking or providing credit facilities. In order that a person may be engaged in the business of providing credit facilities, it must be shown that the providing of credit facility is his business in the sense that the interest earned by him is the main source of his income. A trader may also earn interest from his customers to whom goods are supplied on credit but that is incidental to the main business he carries on. The intention of the legislature was to grant exemption to the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt under section 81(ii). Now, section 81(ii) deals with co-operative societies which are not engaged in businesses mentioned in clauses (a) to (f) of section 81 (i) and provides that in the case of such societies the income shall not be exempt from tax beyond a sum of Rs. 15,000. This means that the income of a co-operative society engaged in activities other than those mentioned in clauses (a) to (f) of section 81(i) is exempt up to Rs. 15,000. Now, the society before us is not engaged in a business covered by clause (a) of section 81(i) nor under clause (d) inasmuch as the income from the sale and supply of kolhus has been held by the Tribunal not to be a business of supply of agricultural implements. Thus, the society is not engaged in a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
