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TMI Blog1989 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... L CHAND MITAL J. -The Punjab State Co-operative Supply and Marketing Federation Ltd., a co-operative society (hereinafter called "the assessee") carried on business in purchase and sale of wheat, paddy and other agricultural produce from its members. During the year relevant to the assessment year 1967-68, the assessee had income of Rs. 40,44,844. Since the aforesaid income was derived from the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the members and not agricultural produce raised by the members. The Tribunal confirmed the decision of the Appellate Assistant Commissioner. Another point which cropped up for consideration was about the receipt of Rs. 40,000 by the assessee from the National Co-operative Development Corporation by way of subsidy to compensate the assessee by percent. of the purchases to meet the loss which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and in the circumstances of the case, the Income-tax Appellate Tribunal erred in law in holding that the income from the purchase and sale of wheat, paddy, etc., amounting to Rs. 40,44,844 and the subsidy of Rs. 40,000 incidential to such business received from the National Co-operative Development Corporation was exempt from tax under section 81(i)(c) of the Income-tax Act, 1961?" So far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een held that the character of the receipt is to be considered and if a subsidy was given towards the purchase price of foodgrains, it will partake of the character of the purchase price being reduced by the amount of subsidy with the result that the income will go up by the amount of the subsidy. Even if the income of the" assessee goes up by Rs. 40,000, since this relates to the sale and purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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