1. This is a case stated for our opinion by the Commissioner of Income-tax, at the request of the Madras Central Urban Bank, Ltd. This is a Society registered under Act 2 of 1912, and the question arises from its assessment on interest derived by it from investments in Government securities. The Society contends that it is exempted from paying tax in respect of these investments by a notification in the Finance Department issued under Section 60, Income-tax Act,. 1922 which corresponds to Section 28, Co-Operative Societies Act, enabling the Governor-General-in-Council to remit income-tax payable in respect of the profits of the society. The question is whether this interest is part of the profits of the society. The notification Ex. A exempts the profits of any Co-operative Society...registered under the Co-operative Societies Act 1912, or the dividends or other payments received by the members of any such Society on account of profits.

2. The notification has been interpreted to include interest on securities which according to the Commissioner is consistently termed " income. " " Profits " according to him does not include interest on securities and hence the latter is tax