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2009 (5) TMI 63 - HC - Income TaxCo-operative society – user of power - Whether a co-operative society engaged in the business of manufacture and sale of sugar out of the sugarcane grown by its members, can be denied deduction under section 80P(2)(a)(iii) of the Income-tax Act, 1961 on the ground that processing involves use of power? – held that - the field of operation of sub-clause (iii) and sub-clause (v) is different inasmuch as sub-clause (iii) applies where the members of the co-operative societies are the growers of the agricultural produce whereas sub-clause (v) applies in case where the agricultural produce need not be grown by its members but may belong to them. Additionally, a notice can be taken of a fact that there cannot be sufficient market for purchase of sugarcane itself as grown by the members. The sugarcane necessarily is to be converted into sugar, etc., before it can he made marketable. In the light thereof, keeping in view the legislative intent for enacting section 80P(2)(a)(iii), the benefit thereunder could not be denied to the appellant
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