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TMI Blog1996 (6) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case and for the purpose of the exemption, the Tribunal is right in law and fact in treating the apex society, the primary society and the members of the primary society as one group and is not the above treatment uncalled for and against the provision of section 80P(2)(a)(ii) ? 3. Whether, on the facts and in the circumstances of the case and on a true interpretation of section 80P(2)(a)(ii), the Tribunal is right in law and fact in holding that 'in the case before us, the assessee does not merely engage in buying and selling' ?" In other words, the question is as to whether an apex co-operative society for coir marketing in Quilon district would be entitled to the exemption that is sought to be claimed on its behalf as an assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage industry. There is no dispute before us that the preparation of coir yarn is from the coconut husks, is done manually and is recognised as a cottage industry. There could be no dispute that the members of the primary society are engaged in the cottage industry." In the process of reasoning, the Tribunal has chosen to distinguish the judgment of the Delhi High Court in Addl. CIT v. Indian Co-operative Union Ltd. [1982] 134 ITR 108, wherein the assessee being an apex society was not held eligible for exemption as the apex society by itself was not engaged in cottage industry. The distinction sought to be with regard to the apex society therein merely looking after buying and selling the products of other societies and individuals and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision is the declaration of law. Learned counsel for the assessee attempted to contend that the apex society also has its function. In our judgment, in view of the travel of the proceedings where there is no whisper in regard to the submissions sought to be made before us for the first time, on the contrary observations of the Tribunal quoted ad verbatim hereinbefore would show that the assessee apex society cannot be said to be engaged in regard to any affairs of a cottage industry in consonance with the legislative intent behind it. In our judgment, the position is completely covered by the above decision of the apex court. For the above reasons all questions are answered in the negative, in favour of the Revenue and against the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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