High Court Of Delhi
CIT vs. National Agricultural Cooperation Marketing Federation Ltd.
Devinder Gupta & J.B. Goel, JJ.
ITR No. 227 of 1978
1st February, 1999
R.D. Jolly, for the Revenue : None, for the Assessee
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 assessee-society is entitled to exemption is respect of the profits derived by it from marketing agricultural produce of its members under s. 80P(2)(a)(iii) of the IT Act, 1961, for the asst. yrs. 1970-71 and 1971-72 ?”
2. The assessee is a co-operative society dealing in the purchase of various goods and directly undertakes exports and inter-State 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. vs. CIT (1998) 147 CTR (SC) 29 : (1998) 231 ITR 814 (SC) : TC S26.2721. The question thus is answered in favour of the assessee and against theRevenue that the assessee is entitled to exemption under s. 80P(2)(a)(iii) of the IT Act, 1961, for the relevant assessment years.
[Citation : 246 ITR 488]