Commissioner of Income Tax vs National Agricultural Coop. Mktg Fed. Ltd.

Devinder Gupta, J.—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 assessed society is entitled to exemption in respect of the profits derived by it from marketing agricultural produce of its members u/s 80P(2)(iii) of the Income Tax Act, 1961, for the assessment years 1970-71 and 1971-72?"

The assessed 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 Others Vs. Commissioner of Income Tax, .

The question thus is answered in favor of the assessor, and against the Revenue that the assessed is entitled to exemption u/s 80P(2) and (iii) of the Income Tax Act, 1961 for the relevant assessment years.