AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (8) TMI 1200
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....nder Maharashtra Co-operative Societies Act and is engaged in providing credit facilities to its members for trading in agriculture implements, seeds and other articles intended for agriculture purpose, etc. The assessee is society having various divisions such as Chemical Division, Machinery Division, Cloth Division, Readymade Garments Division, Sadi Division, Consumer Products Division, Gruhyaupyogi Division, Medical Division, Seeds and Pesticides Division, etc. The assessee filed its return of income for the assessment year 2008-09 declaring Nil income. The case of the assessee was selected for scrutiny, accordingly, notice u/s. 143(2) was issued to the assessee on 21-08- 2009. The net income as per the profit and loss account filed by t....
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....oths and consumer goods are for the benefit of the member. Only small part of the assessee's turnover relates to nonmembers. Whenever the sales are made to non-members, a separate marking is made in the sale register. The sales summary are prepared on monthly basis to identify sales made to members and non-members. At the end of the year, average ratio of sales to members and nonmembers is worked out. In the year under appeal, the sales to nonmembers is only 20%. The assessee is governed by the principles of mutuality. The activities like Grahak Bhandar, Cloth Division, Grahapyogi Division, Medical Division etc. are very much part of the objects of the society for the benefit of its members. The majority of transactions i. E. more than 80% ....
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....ve perused the orders of authorities below. We also considered the judgments on which the ld. AR has placed reliance. It is an undisputed fact that the assessee is a Co-operative Society and is engaged in providing credit facilities to its members and substantial part of its earnings are from the activities related to sale of agriculture implements and machines, chemicals, pesticides, seeds etc. It has come on record that the assessee is having net income of Rs. 43,40,243/- out of which merely Rs. 3,89,174/- relates to income from sale of consumer goods, cloth/readymade business etc. It has not been disputed that 80% of the transactions by the assessee are with its members alone. The assessee has claimed deduction u/s. 80P(2)(a)(i). The rel....
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.....-In this clause, "consumers' co-operative society" means a society for the benefit of the consumers;]" 7. It is an admitted position that these activities were carried out by the assessee for several years and no objection whatsoever was raised by the Department on this count. The assessee has been consistently following the same method of accounting and the nature of activities carried out in the past, as well as, in subsequent assessment years is same. It was only during the impugned assessment year and the following assessment year that the Revenue has raised dispute with respect to profits from consumer goods and garments division. The ld. AR of the assessee has drawn our attention to the assessment order passed in the assessment yea....
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....axable in its hand." 8. The Hon'ble Supreme Court of India in the case of CIT Vs. Bankipur Club Ltd. (supra) has held as under: "14. Now we turn to the main question canvassed by the Revenue in the appeals coming under Groups A to D, namely, whether the assessee- mutual clubs-are entitled to exemption for the receipts or surplus arising from the sales of drinks, refreshments etc. or amounts received by way of rent for letting out the buildings or amounts received by way of admission fees, periodical subscriptions and receipts of similar nature, from its members? In all these cases, the Tribunal as also the High Court have found that the amounts received by the clubs were for supply of drinks, refreshments or other goods as also the l....