VS.K. Singhal, J.-The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, has referred the following question under Section 256(1) of the Income-tax Act, 1961, for decision of this Court, in respect of the assessment year 1978-79. “Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the interest of Rs. 17,292 received by the co-operative society from 13 members and from bank on outstanding balances could qualiir for exemption under Section 80P(2)(a)(i) of the Act ?“

2. The facts of the case are that during the course of examination of the books of account of the assessee, the Income-tax Officer found that the interest paid by the members on the closing balance as at the end of the accounting year was Rs. 15,167 and the assessee has also received interest from the bank of Rs. 2,125. The Income-tax Officer came to the conclusion that the said amount of Rs. 17,292 does not qualify for exemption as provided under Section 80P(2)(a)(i) of the Income-tax Act, 1961. According to the Income-tax Officer, interest from the members attributable to extending credit facilities by way of advancing loans or giving cash assistance