| Case ID |
f9750542-e3f4-485d-8405-74a2d4627c02 |
| Body |
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| Case Number |
Civil Appeal No. 2711 of 1977 |
| Decision Date |
Feb 25, 1993 |
| Hearing Date |
|
| Decision |
The Supreme Court affirmed the decision of the Gauhati High Court, ruling that the Assam Cooperative Apex Marketing Society was not entitled to exemption under section 81(i)(c) of the Income Tax Act, 1961. The court clarified that the term 'agricultural produce of its members' is restricted to produce directly produced by the members of the society. Since the appellant's members were primary marketing societies and not direct agriculturists, the marketing activities did not qualify for the exemption intended for societies engaged in marketing the agricultural produce of their actual members. The ruling emphasized the legislative intent to support base-level societies involved in cottage industries and direct agricultural production, thereby dismissing the appeal without costs. |
| Summary |
This case revolves around the interpretation of Section 81(i)(c) of the Income Tax Act, 1961, which provides exemptions for cooperative societies engaged in the marketing of agricultural produce. The Assam Cooperative Apex Marketing Society Ltd, which acted as a procuring agent for paddy, contended that it was entitled to tax exemption. However, the Supreme Court held that the exemption applies only to societies whose members directly produce agricultural products. Since the society's members were primarily marketing societies, and not individual agriculturists, it was ruled ineligible for the exemption. This case highlights the importance of legislative intent in tax law and the need for cooperative societies to align with the definitions set forth in the Income Tax Act. It serves as a precedent for future cases regarding exemptions for cooperative societies and their operational scope within agricultural marketing. |
| Court |
Supreme Court of India
|
| Entities Involved |
Assam Cooperative Apex Marketing Society Ltd,
Gauhati High Court,
Government of Assam
|
| Judges |
B.P. Jeevan Reddy,
N. Venkatachala
|
| Lawyers |
P. H. Parekh,
Swanatha Iyer,
A. Subhashini
|
| Petitioners |
Assam Cooperative Apex Marketing Society Ltd
|
| Respondents |
Commissioner of Income Tax (Addl)
|
| Citations |
1993 SLD 195,
1993 PTD 1557,
(1993) 201 ITR 338
|
| Other Citations |
(1977) 110 ITR 33
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
81
|