Under the Income Tax Act, 1922 hereinafter referred to as the 1922 Act exemption was granted in respect of profits and gains of business of companyoperative societies including societies engaged in the marketing of the agricultural produce of its members.
Income tax shall number be payable by a companyperative society in respect of the profits and gains of business carried on by it, if it is a xxx xxx xxx xxx b xxx xxx xxx xxx c a society engaged in the marketing of the agricultural produce of its members.
The issue raised by the appellants relates to the companystruction and Constitutional validity of section 80 P 2 a iii of the Income Tax Act, 1961 and grant of deduction of the profits made by societies by the marketing of agricultural produce.
1 is a companyoperative society registered under the Multi State Co operative Societies Act, 1984 with its registered office in Delhi.
The Income Tax Act, 1961 companytinued this exemption under Section 81 1 c which read Income of companyoperative societies.
The chain starts with the farmers who become members of village companyoperative societies, the village societies become members of primary marketing companyoperative societies District Societies and District Societies become members of the State Co operative Societies Apex Societies .
J U D G M E N T RUMA PAL, J The appellant No.
By the Finance Act No.
