Section 80-P deduction for co-operative sugar mills follows binding precedent where sugarcane processing is already concluded.

A co-operative society engaged in manufacturing and selling sugar from sugarcane was considered against the claim that it was marketing the agricultural produce of its members for deduction under section 80-P(2)(a)(iii) of the Income-tax Act, 1961. The jurisdictional High Court's earlier binding decision on identical facts and the same provision had already concluded the controversy, and the revenue accepted that position. The question was therefore answered against the revenue and in favour of the assessee, leaving the Tribunal's order undisturbed.

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Issues: Whether a co-operative society engaged in the manufacture and sale of sugar out of sugarcane is engaged in the marketing of the agricultural produce of its members within the meaning of section 80-P(2)(a)(iii) of the Income-tax Act, 1961.

Analysis: The matter was covered by the earlier binding view of the jurisdictional High Court in relation to identical facts and the same statutory provision. The revenue accepted that the controversy stood concluded against it by that decision.

Conclusion: The question was answered against the revenue and in favour of the assessee.

Final Conclusion: The appeal failed and the order of the Tribunal was left undisturbed.

Ratio Decidendi: A co-operative sugar mill manufacturing and selling sugar from sugarcane does not escape the existing binding precedent on the claim to deduction under section 80-P(2)(a)(iii) when the issue is already concluded by the jurisdictional High Court.

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