| Case ID |
3848003f-c081-47f6-af58-40dcbeb35e4a |
| Body |
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| Case Number |
IT APPEAL No. 35 OF 2005 |
| Decision Date |
Dec 09, 2009 |
| Hearing Date |
|
| Decision |
The appeal by the Revenue was dismissed, affirming that the Assessing Officer was not justified in disallowing the exemption claimed by the co-operative marketing society. The court held that the society, engaged in marketing agricultural produce of its members, was entitled to the benefits under section 80P of the Income Tax Act. The judgment emphasized that the marketing functions of the society encompass various activities including buying, selling, transportation, and processing, which collectively qualify for tax exemptions under the relevant provisions. The Tribunal's decision was upheld, reinforcing the principle that co-operative societies should not be penalized for engaging in ancillary activities that support their primary function of benefiting their members. |
| Summary |
This case revolves around the interpretation of section 80P of the Income Tax Act, 1961, concerning the tax exemption status of a co-operative marketing society. The Karnataka High Court ruled in favor of the Ryots Agricultural Produce Co-Operative Marketing Society Ltd., asserting that income derived from hiring lorries is ancillary to the primary purpose of marketing agricultural products for its members. The court's decision highlighted the broad interpretation of 'marketing' to include various supportive functions that benefit the agricultural community. This case serves as a precedent for similar co-operative societies seeking tax exemptions, emphasizing the importance of their role in promoting agricultural activities. The ruling reinforces the need for tax authorities to consider the broader operational context of such societies when assessing their eligibility for tax benefits. Keywords: Income Tax Act, 1961, section 80P, co-operative societies, tax exemption, agricultural marketing. |
| Court |
Karnataka High Court
|
| Entities Involved |
Ryots Agricultural Produce Co-Operative Marketing Society Ltd.
|
| Judges |
K. L. Manjunath,
Aravind Kumar
|
| Lawyers |
M. V. Seshachala for the Appellant,
A. Shankar for the Respondent
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Ryots Agricultural Produce Co-Operative Marketing Society Ltd.
|
| Citations |
2010 SLD 1868,
(2010) 323 ITR 666
|
| Other Citations |
Addl. CIT v. Ryots Agricultural Produce Co-operative Marketing Society Ltd. [1978] 115 ITR 709(Kar.)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
80P
|