9911796707
TMI Blog1993 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and in the circumstances of the case, the assessee i.e., Assam Co-operative Apex Marketing Society Ltd., is entitled to exemption under section 81(i)(c) in respect of their income arising out of procurement of paddy and other agricultural produce ? " The assessment year concerned herein is 1962-63, the first assessment year under the Income-tax Act, 1961. During the accounting year relevant to the said assessment year, the appellant, the Assam Co-operative Apex Marketing Society Ltd., Assam, was appointed as the procuring agent for paddy by the Government under a scheme evolved by the Government of Assam and contained in its proceeding dated November 23, 1962. The assessee is a society registered under the Assam Co-operative Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e members at the prescribed price and made it over to the primary marketing society. The primary marketing society in turn made over the same to the assessee society. In lieu of this procuring activity, the assessee society was being paid remuneration at the rate of Re. 1 per maund. This one rupee commission was divided between the three co-operative societies. The apex society took 19 paise, the village service co-operative society was entitled to 19 paise and the remaining 62 paise went to the primary marketing society. In the assessment proceedings, the assessee claimed exemption of its income from the said activity under section 81(i)(c), as it then stood. This plea was negatived by the Income-tax Officer but, on appeal, the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the assessee-appellant, is that inasmuch as the assessee has marketed the agricultural produce of its members, namely, the agricultural produce belonging to primary marketing societies, the assessee is entitled to the benefit of the said sub clause. Learned counsel submits that the High Court was not right in holding that for obtaining the benefit of the said sub-clause, the agricultural produce by such members [sic.]. Such an interpretation, according to the learned counsel, amounts to, adding words to the said clause which are not there. We find it difficult to agree with the learned counsel. A reading of clause (i) of section 81 shows that the idea and intention behind the said clause was to encourage basic level soc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
