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2022 (12) TMI 762 - HC - Income TaxDeduction u/s 80P(2)(b)(i) - milk procured from member-village societies and marked to the federal Society - whether the appellant was a “primary society” or not for the purpose of Section 80 P(2)(b)(i) ? - whether the appellant is an “Apex Society” or a “Central Society”? - HELD THAT:- There is no dispute that the petitioner is a Co-operative society registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983. The expression “Primary Society” has not been defined in the Income Tax Act, 1961. Only expression - primary co-operative agricultural and rural development bank has been defined. The expression “ Primary Society” has not been defined in the Income Tax Act, 1961. The expression “Primary Society” has been defined in Section 2(21) of the Tamil Nadu Co-operative Societies Act, 1983. Thus, only if the appellant is neither an “Apex Society” or a “Central Society”, as defined above, it will not be entitled to the benefit of the deduction under Section 80 P(2)(b)(i) of the Income Tax Act, 1961. There is no discussion as to whether the petitioner is an “Apex Society” or a “Central Society”. Instead, the case was argued on the strength of the G.O.Ms. No.555 dated 21.3.1980. Neither the AO nor the Appellate Commissioner or the Appellate Tribunal have examined the status of the appellant from the point of the view of the definition of a “Primary Society” in Section 2(21) of the Tamil Nadu Co-operative Societies Act, 1983. Since the issue as to whether the appellant is an “Apex Society” or a “Central Society” or not has not been examined by any of the lower authority, viz the Assessing Officer, Appellate Commissioner or the Appellate Tribunal, we are forced to interfere with the impugned orders. We are therefore of the view, the impugned common order passed by the Income Tax Appellate Tribunal have to be set aside and the cases be remitted back to the Assessing Officer for re-examine the issue as to whether the appellant would be “Primary Society” or whether the appellant was an an “Apex Society” or a “Central Society” or not. We, therefore remit the case back to the Assessing Officer to re-examine the issue in the light of the definition of the Tamil Nadu Co-operative Societies Act, 1989 and to pass a afresh order in the light of the definition contained in the Tamil Nadu Co-operative Societies Act, 1989, within a period of six months from the date of receipt of a copy of this order by the Assessing Officer. The appellant shall produce documents to substantiate its status before the Assessing Officer.
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