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PETITIONER: HOSHIARPUR CENTRAL CO-OPERATIVE BANK LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX, SIMLA.
DATE OF JUDGMENT: 02/08/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. SHAH, J.C.
CITATION: 1960 AIR 1303
ACT: Income-tax--Co-operative Society--Profits earned in business with non-members--Whether exempt from tax--Income-tax Act, 1921 (IX of 1921), s. 60, notification.
HEADNOTE: The assessee Bank, which was a co-operative society, did business is controlled commodities with the approval of the Registrar of Co-operative Societies and earned profits. it claimed that these profits were also exempt from taxation under F. D. (C. R.) Notification R. Dis. NO. 291-1. T./25 dated August 25, 1925, as subsequently amended, issued under s. 60 of the income-tax Act. This notification exempted "the profits of any co-operative society " from tax. It was urged for the Department that these words referred to profits made by a co-operative society in its business as a pure co-operative society, i.e., in business with its own members within the four corners of the Cooperative Societies Act, 1912, and the bye-laws made thereunder. Held, that the said profits were exempt from tax. The words of the Notification were wide enough to include profits of business of a co-operative society in transactions with non- members also. It was always open to the appropriate Govern- me...