https://www.taxtmi.com/caselaws?id=71494 Section 80P(2)(a)(iii) applies only where a co-operative society markets the direct agricultural produce of its members. A sugar factory that purchases sugarcane, processes it into sugar with modern machinery, and sells the manufactured product is not marketing the members' agricultural produce in its original form. The activity is treated as the society's own trading business rather than an integral or ancillary part of marketing members' produce. Purchase of sugarcane from non-members and the absence of mutuality further support the conclusion that the society is not acting merely as an agent for members. Deduction under section 80P(2)(a)(iii) was therefore denied. en-us Thu, 02 Feb 1995 00:00:00 +0530 Mon, 25 Apr 2011 12:12:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71494 Section 80P(2)(a)(iii) applies only where a co-operative society markets the direct agricultural produce of its members. A sugar factory that purchases sugarcane, processes it into sugar with modern machinery, and sells the manufactured product is not marketing the members' agricultural produce in its original form. The activity is treated as the society's own trading business rather than an integral or ancillary part of marketing members' produce. Purchase of sugarcane from non-members and the absence of mutuality further support the conclusion that the society is not acting merely as an agent for members. Deduction under section 80P(2)(a)(iii) was therefore denied. Case-Laws Income Tax Thu, 02 Feb 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71494