Kerala Co-Operative Consumers' ... vs Commissioner Of Income-Tax on 15 July, 1987
The other two judgments viz., that of Kerala High Court in the case of Kerala Co-operative Consumers' Federation Ltd. (supra) and of the Rajasthan High Court in the case of Co-operative Supply & Commission Shop Ltd. (supra) have also been relied upon by the Ld. DR. These two were the cases where the issue under dispute was the question of exemptability of interest on outstanding balances in respect of supply of goods on credit basis. Both the High Courts, in the above cases, held that the activities of the nature of supply of goods cannot be considered to be banking activities and hence the issues were decided against these assessces.