9911796707
TMI Blog1999 (3) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee was entitled to exemption under section 80P(2)(a)(iv) of the Income-tax Act, 1961, in respect of the income of Rs. 5,51,651 from the Lift Irrigation Scheme ?" The assessee is a co-operative society engaged in the manufacture and sale of sugar. It is also engaged in supplying lift irrigation water to its members cultivating sugarcane in that area to supply to the assessee-society's sugar factory. The assessee-society executed 45 Lift Irrigation Schemes in the area of its operation. The members of each of the Lift Irrigation Schemes were the members of the assessee-society. Each scheme was a separate scheme. The beneficiary members contributed only 1/4th cost of the scheme. The rest of the cost was met from the Government loans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusion that the requirement of section 80P(2)(a)(iv) of the Act was satisfied in the case of income derived from supply of water through Lift Irrigation Scheme by the assessee-society to its members. The Commissioner (Appeals), therefore, allowed the appeal of the assessee and held that the income derived by the assessee from the supply of water to its members through Lift Irrigation Scheme was exempt from income-tax under section 80P(2)(a)(iv) of the Act. Aggrieved by the order of the Commissioner (Appeals), the Department appealed to the Income-tax Appellate Tribunal ("the Tribunal"). The Tribunal upheld the order of the Commissioner (Appeals) and dismissed the appeal of the Revenue. While doing so, the Tribunal observed that the water c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said provision. We have carefully considered the rival submissions in the light of the uncontroverted facts of the case. The assessee is a co-operative society registered under the Maharashtra State Co-operative Societies Act. It applied to the Government of Maharashtra for permission to lift water from Krishna, Warna and Warala rivers. The Government of Maharashtra gave permission to the assessee-society to lift water from these rivers on the following conditions : (i) The society should supply water only to the members who are beneficiaries of the scheme. (ii) The society should have to execute necessary agreement to the Government. (iii) The society shall lift water against the payment of water charges as fixed by the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely :--- (a) in the case of a co-operative society engaged in---. . . (iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or . . ." It is clear from a plain reading of the above provision that exemption is granted to a co-operative society in respect of income ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
