Apex society can't claim tax deduction if not growing produce. Court overturns Tribunal decision.

The High Court of Kerala held that an apex society cannot claim deduction under section 80P(2)(a)(iii) of the Income-tax Act if the agricultural produce is not grown by its member societies. The court allowed the appeal by the Commissioner of Income-tax, overturning the decision of the Income-tax Appellate Tribunal.

---

---

The High Court of Kerala ruled that the amendment to section 80P(2)(a)(iii) of the Income-tax Act, made in 1998, clarified that agricultural produce must be grown by the members of apex societies for deduction. The court held that an apex society cannot claim deduction if the agricultural produce is not grown by its member societies. Consequently, the court allowed the appeal by the Commissioner of Income-tax, setting aside the decision of the Income-tax Appellate Tribunal.

---