| Case ID |
4645a05e-3f2d-4975-ae18-f9cfa4468d2a |
| Body |
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| Case Number |
N/A |
| Decision Date |
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| Hearing Date |
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| Decision |
The case revolves around the interpretation of Section 80P(2)(iii) of the Income-tax Act, 1961, concerning the eligibility of a co-operative society to claim exemptions on profits derived from the sale of eggs, which were marketed as agricultural produce. The Tribunal upheld that poultry farming is an extended form of agriculture, affirming the claim of the co-operative society for exemption. However, the court noted the critical aspect of ownership of the eggs at the time of marketing was not adequately examined. The decision emphasized that only income derived from the agricultural produce owned by the members qualifies for exemption. The reference was returned to the Tribunal to investigate the crucial question of ownership before determining the exemption eligibility. |
| Summary |
This case addresses the taxation implications for a co-operative society involved in the sale of eggs, questioning whether such sales can be categorized under agricultural produce for tax exemption purposes. The Income-tax Act, 1961, specifically Section 80P(2)(iii), provides exemptions for cooperative societies marketing agricultural produce owned by their members. The case highlights the importance of establishing ownership of the eggs at the time of marketing, as the exemption is contingent on the agricultural produce belonging to the agriculturists. The court's ruling reinforces that poultry farming qualifies as agriculture, thus supporting the argument for exemptions. This case serves as a critical reference for co-operative societies seeking tax exemptions under similar circumstances. Key terms include 'income tax exemption', 'co-operative societies', 'agricultural produce', and 'poultry farming'. |
| Court |
N/A
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| Entities Involved |
N/A
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| Judges |
G. RAMANUJULU NAIDU,
Y.V. ANJANEYULU
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| Lawyers |
M.S.N. Murthy,
Krishna Koundinya,
M.J. Swamy
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
V. Mulakaluru Co-operative Rural Bank Ltd.
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| Citations |
1988 SLD 1796,
(1988) 173 ITR 629
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
80P(2)(iii)
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