For purposes of companyvenience we shall set out the facts and decide one of these cases, number.
The assessee which is an apex society purchased cashew from the primary companyperative societies who are its members.
The matter was carried further in second appeal by the Department to the Appellate Tribunal which took the view that the assessee would be entitled to exemption under the aforesaid provisions of the Act.
The society in question is registered under the Kerala Co operative Societies Act and is an assessee under the Income Tax Act, 1961 hereinafter referred to as the Act in respect of profits earned by it out of the purchases made from the member societies.
The Department sought for a reference on the question referred to above to the High Court.
The total purchases made by it were to the extent of Rs.
On appeal, the Commissioner of Income Tax Appeals took the view that the assessee is entitled to exemption under the aforesaid provisions in respect of the income from procurement of cashew nuts from the member societies.
However he made it clear that the said exemption would number be applicable for purchases or supplies made by primary societies or service societies which were number members of the assessee society.
33,23,71,339/ out of which the purchases from member societies was in a sum of Rs.
95.02.851/. The claim for exemption of this amount was made on the basis that it marketed agricultural produce of its members.
506 of 1994, filed by the Kerala State Cooperative Marketing Federation Limited and apply the result there so in other matters.
C.A.NO.
15430/96, 2354 55/96 J U D G M E N T Rajendra Babu, J. We have heard a batch of cases in which the question raised for our companysideration is whether the assesses under the Income Tax Act which are Co operative Societies are entitled to deduction under Section 80P 2 a iii of the Income Tax Act, 1961 in resoet of the purchases made from member societies ?
The Income Tax Officer rejected the claim.
