1987 (3) TMI 105

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessee is a registered co-operative society. Its members are of two categories: (i) other co-operative societies of teachers, and (ii) individual teachers. The assessee gets text books from the Government at concessional rates and sells them to any person who buys them as also to the members of the society at a discount. During the assessment proceedings, the stand of the assessee was that the profits earned by sales to the members of the society was not taxable as it was not the income of the society. The surplus from trading with members had been arrived at by taking proportionate profit on sales to the members. The surplus worked out, as mentioned above, in the three years is under consideration. The claim of the assessee was rejected a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xt books at discount from the Government and sells them at a profit to various categories of persons. It sells to members and to the whole world. Every sale involves some profit. The assessee is obviously, therefore, a trading society aiming at increasing its profit. In this case also, therefore, there is no identity between the contributors and the participators. The participators in the profits are only members but the contributors are every individual who may buy from the assessee. Obviously, therefore, this case stands on the same footing as the case of Jamshedpur Co-operative Stores Ltd. [1986] 157 ITR 127 (Pat). Learned counsel for the assessee contended that so far as the trading activities between the society and non-members are ....