TMI Blog2005 (2) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80P(2)(iv) in respect of gypsum section and seed section ? R.A. No. 30 (Alld.)/1989 Whether, on the facts and in the circumstances of the case, the Tribunal was, in law, justified in holding that the assessee was entitled to relief under section 80P(2)(iv) in respect of fertilizer and seed section ? 2. The reference relates to the assessment years 1977-78, 1978-79 and 1980-81. 3. Briefly stated, the facts giving rise to the present reference are as follows:- The respondent-assessee is an apex co-operative society of Uttar Pradesh. Its members are the district level co-operative societies and the Government of Uttar Pradesh. The members of the respondent-society do not carry any agricultural activities by thems ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-operative society is exempt from tax what has to be seen is whether the income fell within any of the several heads of exemption. If it fell within any one head of exemption, it would be free from tax notwithstanding that the conditions of another head of exemption are not satisfied and such income is not free from tax under that head of exemption. 6. The Apex Court had further held that for the purposes of section 80P(2)(a)(iii) of the Act, so long as agricultural produce handled by the assessee belonged to its members it was entitled to exemption in respect of the profits derived from the marketing of the same. Whether the members came by the produce because of their own agricultural activities or whether they acquired it by purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ala State Co-operative Marketing Federation Ltd. (supra), the Parliament had amended the provision of section 80P(2)(a)(iii) of the Act by substituting the words the marketing of agricultural produce grown by its members by the Income Tax (Second Amendment) Act, 1998, with effect from 1-4-1968. The validity of the amendment has been upheld by the Apex Court in the case of National Agricultural Co-operative Marketing Federation of India Ltd. v. Union of India [2003] 260 ITR 5482. However, no such amendment has been made in clause (iv) of section 80P(2)(a) of the Act which read as follows :- 80P. Deduction in respect of income of co-operative societies.- (1) ****** (2) The sums referred to in sub-section (1) shall be the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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