ASSAM CO OPERATIVE APEX BANK LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question of law has been referred by the Income- tax Appellate Tribunal, Gauhati Bench (hereinafter referred to as "the Tribunal"), under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") :

(2.) OFFICER that the assessees sole income including interest on securities was in the nature of business income and, therefore, it was totally exempt under section 80P(2)(a)(i) of the Act. The Income-tax OFFICER found from the records that the assessee was assessee only on interest on securities during the earlier year holding the opinion that the securities ware not trading assets of the assessee, and therefore, the income in question was not business income.

(3.) THE assessee thereafter filed three appeals before the Tribunal from the said consolidated order of the Appellate Assistant Commissioner, the appeals being numbered as ITA Nos. 2092 (Gau), 2093 (Gau) and 2094 (Gau) of 1970-71. THE ground taken in these appeals is that the interest from the Government Securities is business income of the assessee, and, therefore, it was exempt from taxation under section 80P(2)(a)(i) of the Act.