- (1.) THE following question has been referred by the Tribunal under s. 256 (1) of the IT Act, 1961 (for short "the Act") : Asst. yr. 1981-82 : "whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the short-term deposits are 'investment' of the assessee within the meaning of the provisions of s. 80p (2) (d) and interest earned on these deposits is exempt under s. 80p (2) (d) ?"
(2.) THE assessee, a co-operative society, earned certain income in the form of interest on certain deposits and investments and claimed exemption under cl. (d) of s. 80p (2) of the Act.
(3.) INTEREST or dividend, derived from investment with another co-operative society, is required to be deducted from the total income of the assessee-society. In other words, such income is exempt from payment of income-tax.;