TaxTMI 
TaxTMI 
1996 (10) TMI 67
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....g question of law to this court stated to be arising from the order of the Tribunal dated May 25, 1990 (annexure " P-4 ") : " Whether, on the facts and circumstances of the case, the amount to be deducted under section 80P(2)(a)(iv) of the Act, is the gross income from sale of fertilizers to its members or whether proportionate expenses are to be reduced from such income before allowing the said deduction ? " The assessee is a co-operative marketing society engaged in the sale of agricultural produce to its members and is providing agricultural inputs to its members and also to others. It also procures foodgrains on behalf of the Governmental agencies. For the assessment year 1982-83, the assessee filed its return of income of Rs. 31,200 ....
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....d from the sale of fertilizers to the members of the assessee-society should have been made and that exemption under section 80P(2)(a)(iv) was allowable on gross profit earned from sale of fertilizers to its members. In support of this contention, reliance was placed on a decision of this court in Punjab State Co-operative Supply and Marketing Federation Ltd. v. CIT [1981] 128 ITR 189. On behalf of the Department it was submitted before the Tribunal that while computing the deduction under section 80P(2)(a)(iv) its net profits from sale of fertilizers to the members has to be taken into consideration and not the gross profit. In support of this contention, attention was invited to the provisions of section 80AB which came into force with e....
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....tion under section 80P(2)(a)(iv) is allowable on gross profit and not on net profit. The Tribunal, therefore, held that in the instant case the expenditure attributable to the earning of profit from fertilizers to the members amounted to Rs. 70,400. Proportionate expenditure was deducted from gross profit for the purpose of allowing deduction under section 80P(2)(a)(iv). The Tribunal declined to refer the question claimed by the assessee to this court for its opinion on the premise that the controversy in question stands concluded in favour of the Revenue by the decision of the Supreme Court in Distributors (Baroda) P. Ltd.'s case [1985] 155 ITR 120 and, therefore, no referable question of law arose from the of the Tribunal. Counsel for, ....