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Section 80P of the Income-tax Act, 1961 - Deductions - Income of co-operative societies - Assessment year 2002-03 - Assessee-society was not entitled to deduction under section 80P(2)(d) in respect of interest received on advances provided to its member co-operative societies [In favour of revenue] The assessee-society was an apex body of co-operative societies and district co-operative milk producers union were its members. It claimed deduction under section 80P(2)(a)( i) in respect of interest received on advances provided to its member co-operative societies. The Assessing Officer held that the working capital advances did not qualify the test of 'investments' as enshrined in section 80P(2)(d) and the deduction claimed by the assessee under the said provision could not be allowed. Held that the credit facility which was provided by the assessee to its members was relating to the outstanding dues to the assessee of the milk unions. It also recorded that the credit facility which was extended by the assessee to its members was ancillary to its main object and it was not carrying on the business of banking or providing credit facilities to its members and, therefore, was not entitled to the benefits of section 80P(2)(a)( i). CASES REFERRED TO Punjab State Co-op. Milk Producers Federation Ltd. v. CIT (No. 1) [2011] 336 ITR 495 (P&H). M.R. Sharma for the Appellant. Ms. Urvashi Dhugga for the Respondent. JUDGMENT Ajay Kumar Mittal, J. - This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), has been filed by the assessee against the order dated November 26, 2008, passed by the Income-tax Appellate Tribunal Chandigarh Bench "B", Chandigarh (in short "the Tribunal"), in Miscellaneous Appeal No. 233/Chandi/2006 arising out of I.T.A. No. 1068/Chandi/2005, relating to the assessment year 2002-03. 2. The appeal was admitted on July 17, 2009 to consider the following substantial question of law for determination by this court : "Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal has grossly erred in denying the claim to the appellant on account of interest received by the appellant being a cooperative…

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