ORDER
B. R. ARORA, J :
The Tribunal, Jaipur Bench, Jaipur, at the instance of the Revenue, has referred the following question of law for the opinion of the High Court with respect to the asst. yr. 1977-78 of the assessee :
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the interest of Rs. 71,467 received by the co-operative society from 13 members on outstanding balance could qualify for exemption under s. 80P(2)(a)(i) of the Act ?”
2. This reference is squarely covered by the decision of this Court rendered in CIT vs. Co-operative Supply & Commission Shop Ltd. (1993) 204 ITR (Raj) 713 wherein, in the case of the assessee itself, for the asst. yr. 1977-78, (sic 1978-79) the same question was answered as under :
“The basic requirement of s. 80P(2)(a)(i) of the IT Act, 1961, is that the society must be engaged in carrying on the business of banking or providing credit facilities to its members. Sec. 5(b) of the Banking Regulation Act, 1949, defines banking as accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise. In order to constitute the business of banking, it is necessary that these activities must be the main source of income of the society. It is equally true that the words which are used in one particular clause have to be given the same colour and understood as forming part of one genus of which they may be different species. The words “providing credit facilities” would, therefore, have to be interpreted to comprehend the business of lending services of credit facilities in connection with the business of banking. The facility of selling goods on credit to its members by a co-operative society which is incidental to the business of selling goods will not amount to providing credit facilities in the nature of the business of banking so as to amount to carry on the business of banking or providing credit facilities to its members. Sec. 80P(2)(a)(i) is meant to cover the societies which are carrying on the business of banking and in the course of their business are providing credit facilities to its members.”
3. The question referred is identical with the question which came up for decision in DB IT Ref. No. 10 of 1986 decided on 13th Oct., 1992 CIT vs. Co-operative Supply & Commission Shop Ltd. (supra), in the case of the assessee itself. For the reasons given in the aforesaid case for the asst. yr. 1977-78 (sic 1978-79), it is held that the interest on the outstanding balance in respect of supplies of goods would not qualify for special deduction under s. 80P(2)(a)(i) and the learned Tribunal was not justified in coming to the conclusion that the interest on the outstanding balances in respect of supplies of goods would qualify for exemption under this section.
4. Consequently, the reference is answered in favour of the Revenue and against the assessee.