https://www.taxtmi.com/caselaws?id=5280 SC held that a co-operative society's profits from ginning, pressing and marketing cotton were exempt under s.81(i)(c) of the IT Act as it stood before 1 Apr 1968. The Court found sales were to the outside world but the activity was incidental/ancillary to the co-operative's enumerated functions, so the proviso excluding distinct activities did not apply. A late-raised argument that processing altered the character of produce was rejected. The High Court's contrary conclusion was reversed; the question was answered in favour of the assessee and against the Revenue. en-us Wed, 26 Apr 1989 00:00:00 +0530 Tue, 28 Oct 2025 13:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5280 SC held that a co-operative society's profits from ginning, pressing and marketing cotton were exempt under s.81(i)(c) of the IT Act as it stood before 1 Apr 1968. The Court found sales were to the outside world but the activity was incidental/ancillary to the co-operative's enumerated functions, so the proviso excluding distinct activities did not apply. A late-raised argument that processing altered the character of produce was rejected. The High Court's contrary conclusion was reversed; the question was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Wed, 26 Apr 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5280