Commissioner Of Income Tax vs National Agricultural Coop. Mktg ...
1999 Latest Caselaw 10 Del

JUDGMENT

Devinder Gupta, J.

1. The following question of law has been referred to this Court for its opinion:-

"Whether on the facts and in the circumstances of the case, the assessee society is entitled to exemption in respect of the profits derived by it from marketing agricultural produce of its members under Section 80P(2)(iii) of the Income Tax Act, 1961, for the assessment years 1970-71 and 1971-72?"

2. The assessee is a cooperative society dealing in the purchase of various goods and directly undertakes exports and interstate trade and arranges imports of agricultural inputs and other essential activities needed by the farmers. In view of the statement of facts and that the profits derived by it for the relevant assessment years is from marketing agricultural produce of its members, the question is now fully covered by the decision of the Supreme Court in Kerala State Co-operative Marketing Federation Ltd. and Anr. v. Commissioner of Income-tax (1998) 231 I.T.R.814.

3. The question thus is answered in favour of the assessor, and against the Revenue that the assessee is entitled to exemption under Section 80P(2) and (iii) of the Income Tax Act, 1961 for the relevant assessment years.