HOSHIARPUR CENTRAL CO-OPERATIVE BANK LTD. vs COMMISSIONER OF INCOME-TAX, SIMLA.

The Supreme Court ruled that profits earned by a co-operative society from business transactions with non-members are exempt from taxation under Section 60 of the Income-tax Act, 1921, and the relevant notification issued thereunder. The Court held that the language of the notification is broad enough to encompass profits from such transactions, and it is permissible for a co-operative society to engage in business with non-members. The judgment distinguished prior cases that limited the exemption to profits from transactions solely with members of the society.