M/S The Totgar'S Co-Op.Sale Sty.Ltd vs Income-Tax Officer,Karnataka

The Supreme Court ruled that interest income earned by a cooperative credit society from short-term deposits and government securities does not qualify as business income under Section 80P(2)(a)(i) of the Income Tax Act, 1961, but rather falls under 'Income from other sources' as per Section 56. The Court affirmed the decision of the Income Tax Appellate Tribunal, holding that the nature of the income does not align with the business activities of the society, thus denying the deduction claimed under Section 80P(2)(a)(i). The judgment applies to assessment years 1991-1992 to 1999-2000, excluding 1995-1996.