9911796707
TMI Blog1976 (7) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... g out of procurement of paddy and other agricultural produce ? " The facts of the case may be briefly stated as follows: The assessee is a co-operative society registered under the Assam Co-operative Societies Act, 1949 (Assam Act 1 of 1950). The relevant assessment year is 1962-63. The objects of the assessee-society are briefly as follows: (i) to arrange for the sale of produce of the members of affiliated societies and other members to the best advantage; (ii) to purchase and sell agricultural produce and farm and farmers' requisites including seeds, manures, fertilizers and machinery, etc.; (iii) to act as agent of members for the disposal of their produce; and (iv) to act as a central purchasing agency for agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. During the accounting year for the assessment year 1962-63, the assessee-co-operative society received considerable amounts by way of remuneration for paddy procurement. Before the Income-tax Officer the assessee claimed that these amounts were exempt from taxation under section 81 of the Act. The Income-tax Officer, however, did not accept the assessee's contention and the prayer for exemption was rejected. Against the order of the Income-tax Officer the assessee preferred an appeal before the Appellate Assistant Commissioner who found that the assessee, was entitled to claim the exemption under section 81 of the Act. Against the order of the Appellate Assistant Commissioner, the department preferred an appeal before the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whom the agricultural produce belonged were not the members of the assessee's society though they could have become its members." The Tribunal after considering the materials on record has come to the categorical finding that the cultivators who grew the paddy were not the members of the assessee-society though they were members of the service-co-operative societies which in turn were the members of the assessee-society. Mr. S. K. Sen, the learned counsel for the petitioner, submits that the service-co-operative societies are the affiliated societies and, therefore, the members of the service-co-operative societies are deemed to be the members of the assessee-society. The proposition sought to be raised by the learned counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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