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TMI Blog1986 (4) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(2)(a)(vii). It was his view that the President of the society was given a vote as a member in addition to a casting vote enjoyed by him as President. Shri Jaitram Barve was President of the society during the relevant years and he was also a member of Parliament and he did not do any fishing activity. His stay in Nagpur was for occasional periods only because of his association with various all-India bodies and federations, nor did the contribute any labour, nor could it be said that he was engaged in 'allied activities' as envisaged in sub-clause (vii) of section 80P(2)(a). Before the AAC, the ITO raised a further ground, viz., that the rules and bye-laws of the society granted voting rights to various primary societies which are memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at primary societies have been admitted as members, he submitted that the assessee is a federal society formed for purpose of promoting fishing and allied activities and in pursuance of these objects, primary societies have been admitted as members in order to reach out to a large section of the fishermen and in this context, the word 'individual' should be construed in a equitable manner so as to render justice to the societies which are really engaged in activities falling within sub-clause (vii) of section 80P(2)(a). He further submitted that the member-societies represent the fishermen folk who are themselves members in the said societies and in fact these primary societies became members in only to extend the benefit of the apex societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned commentrators Chaturvedi Pithisaria's Income-tax law, Third end, Vol 2, p. 2222 are of the view that marketing function involves exchange functions such as buying and selling, physical functions such as storage, transportation, processing and commercial functions such as standardisation, financing and market intelligence. From the annual report, it is clear that the President was actively responsible for providing market intelligence with the help of which fish were sold to Calcutta buyers. Therefore, we uphold the contention of the assessee that the President was engaged in.activities specified in sub-clause (vii) of section 80P (2) (a) read with the proviso thereto. In fact, it is our considered view that when the President goe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding the annual general meeting will have one vote. The general body to be elected will consist of (1) one representative from each primary society which is a member, i.e., Class A, and (2) representative of members from Class B at the rate of one representative for 25 members. It is the ITO's contention that the proviso to section 80P (2) (a) restricts voting power only to individual members of the society, apart from the State Government or co-operative credit societies, and as the primary societies which are non-credit societies are members in the assessee-society, the conditions stipulated in the proviso cited supra are violated. The assessee, on the other hand, pleads for a liberal interpretation. 7. Proviso to section 80P(2)(a) rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are done by the members of primary societies also. 8. In Indian Co-operative Union Ltd.'s case, it was held that a co-operative society can in a way be.likened to a family constituted by its members. When the members of a co-operative society are engaged in the manufacture of goods in the cottages or dwelling houses, it can be said that the family constituted by its members is engaged in a cottage industry. Of course, in that case, the society was not allowed deduction on some other grounds. Even though technically the individual members constituting the society are different and distinct from the society itself, as was urged by the learned departmental representative relying on the decision of the Allahabad High Court in U.P. Co-opera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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