1998 (3) TMI 694

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..... ive marketing federation limited registered under the Co-operative Societies Act, and mainly deals, inter alia, in general fertilisers, products from mixing units, etc. The Income Tax Officer, for the assessment year 1977-78, rejected the claim of the assessee for exemption under section 80P(2)(a)(iv) of the Income Tax Act (hereinafter referred to as `the Act') of a sum of ₹ 6,429 being .....

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..... e's business in fertilisers and fix the two items, the assessee was entitled to exemption under section 80P(2)(a)(iv) of the Act. 3. The revenue has challenged the order of the Appellate Assistant Commissioner by filing an appeal before the Tribunal and the Tribunal concurred with the order of the Commissioner (Appeals) and held that the assessee was entitled to exemption on the sale of scr .....

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..... 17,68,237? 4. Mr. C.V. Rajan, learned counsel for the revenue fairly brought to our notice an earlier decision of this court in the case of CIT v. T.N. Co-op. Marketing Federation Ltd., wherein this court considered the claim of exemption under section 80P of the Act with reference to the same assessee for the earlier assessment years 1974-75 and 1975-76 and held that the assesse .....

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..... he income from the fertiliser granulation plant to the extent that the sales are effected to the members would be exempted under section 80P of the Act and the sale of the scrap, in our opinion, is governed by the same criterion regarding the exemption referred to in section 80P(2)(a)(iv) of the Act and the sale of scrap also would qualify for exemption under section 80P of the Act, but, the deduc .....

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..... d equally also apply to the facts and circumstances of the case and the Tribunal was justified in holding that, with reference to the three amounts, the assessee is entitled to exemption under section 80 of the Act. There is no infirmity in the order of the Tribunal. 6. Accordingly, our answer to the question of law, referred to us is in the affirmative and against the revenue. In the circumsta .....

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