TaxTMI 
TaxTMI 
2022 (12) TMI 762
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.....07.2009 in I.T.A.No.32/Mds/2009 (impugned in TCA.No.327 of 2000), the Appellate Tribunal followed its earlier order dated 30.06.2008 in I.T.A.Nos.2200 to 2203 /Mds/2006 (impugned in T.C.A.Nos.2128 to 2131 of 2008) and dismissed the Appellant's aforesaid appeal against Order dated 25.11.2008 in I.T.A. No.228/06-07 passed by the Appellate Commissioner. 5. Operative portion of the impugned common order dated 30.06.2008 of the Appellate Tribunal reads as under:- 10. Therefore, it is very important to examine whether the assessee society is a primary society or not. The CIT (Appeals) has made an observation in his order that the Section does not defined a co-operative society and a primary society. But, the Andhra Pradesh High Court in the case of CIT v. Mulkanoor Co-operative Rural Bank Ltd., (1988) 173 ITR 628 (AP) , while considering the case of exemption in the case of agricultural produce marketed by co-operative society, had held that the agricultural produce marketed by society should belong at all points of time to the agriculturists. It means a primary co-operative society is considered to be a society where the activities are channelized at a primary level. As far....
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....tion of Parliament. 12. The above decision underlines the basic character of a primary society where the members are the persons who are directly producing agricultural and similar products. In the present case, it is the village level primary societies which are collecting milk produced by its member-farmers. Those societies are supplying milk to federal societies like the assessee. The assessee thereafter supplies milk to State apex society. 13. In this context, it is also to be noticed that where the primary societies are supplying milk alone, the District Co-operative Societies like the assessee are supplying not only milk but also its by-products. This is because District Unions like the assessee are running milk processing plants and in processing the milk produces, by-products such as butter, ghee, etc., and also different grades of milk like full cream milk, toned milk, skimmed milk etc. Therefore, at the level of District Unions like the assessee, there is not only an activity of collecting and supplying of milk but also the activity of processing the milk. 14. As already stated, the specific expression used in Section 80P(2)(b) " being a primary....
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....ieties and marked to the federal Society? ii) Whether the Tribunal was right in following 201 ITR 338 which was reconsidered by the Apex Court in 231 ITR 814 laying down the ratio decidendi that the exemption under Section 80 P is available to the society engaged in the marketing of agricultural produce of its members would mean not only such societies which deal with the produce raised by the members who are individuals or societies which are members thereof who may purchased such goods from the agriculturists? iii) Whether on the facts and circumstances of the case, the Tribunal was right in not holding the issue of reopening of assessment when it had decided the issue on merits against the assessee and especially when the CIT (A) has held the question of reopening as redundant after having decided on merits in favour of the assessee? iv) Whether the Tribunal ought to have applied the Supreme Court decision in 41 ITR 191 and 264 ITR 566 and held that the issue of notice and the assessment under Section 147 are bad in law in as much as it was based on a mere change of opinion and hence unsustainable in law?" 8. Earlier, the appellant suffered adverse ....
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....sing officer issued notices under Section 148 of the Act for reopening the assessment. In the assessment order for 1989-90, it was held that the appellant had made incorrect claim under Section 80P(2)(b)(i) to the tune of Rs.18,32,843/-. Therefore, the appellant is not entitled to deduction under Section 80P(2)(b)(i). 14. The learned counsel for the appellant further submits that there was no failure on the part of the appellant to disclose the material facts necessary for assessment. The details regarding the claim of deduction were available in the return of income filed and the annexures. 15. It is submitted that the assessing officer had come to conclusion that the appellant is entitled to the deduction , which was also granted in the earlier assessment years. Therefore, in violation of the provision to Section 147 of the Act for reopening the assessment beyond the period of 4 years from the end of the relevant assessment was barred by limitation. 16. It is further submitted that the assessing officer has no jurisdiction to issue notice under Section 148 of the Act, when the original assessment was completed under Section 143(3) in absence of fresh material that was no....
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.... federation Apex body as the entire functioning of the Union is by the federation. 22. Learned counsel for the respondent further submitted that in the present case, the milk was being supplied to the federal society is actually by the producer society at village level which is a primary society consisting of milk producers who are its members. 23. It was submitted that the appellant was in the middle rung in the three tier system i.e. Village Level, District Level and State Level. As per the details provided by the Tamil Nadu Dairy Development department, the three tier structure or dairy co-operatives, the tier 2 district level is stated as "The District Co-operative Milk Producers Unions (DCMPU)" are the intermediary Societies at District Level and the Village Level MPCS functioning in the jurisdiction of the respective unions. 24. Learned counsel for the respondent further submitted that only a primary society engaged in supplying milk by its members is entitled for the deduction provided under Section 80P(2)(b)(i) and not the member society as is the case of the appellant which is a Union of Primary Society. It is submitted that the appellant did not produce the bye l....
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.... 80P: DEDUCTION IN RESPECT OF INCOME OF COOPERATIVE SOCIETIES.- (1) Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in subsection (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely:- (a) in the case of a co-operative society engaged in- i) carrying on the business of banking or providing credit facilities to its members, or ii) a cottage industry, or iii) the marketing of agricultural produce grown by its members, or] iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or v) the processing, without the aid of power, of the agricultural produce of its members, or 2 vi) the collective disposal of the labour of its members, or vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, sto....
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.... warehouses for storage, processing or facilitating the marketing of commodities, the whole of such income; (f) In the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities 3 *** or any income from house property chargeable under section 22. Explanation.-For the purposes of this section, an -urban consumers' cooperative society? means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment. 3) In a case where the assessee is entitled also to the deduction under 4 [ 5 *** 6 [section 80HH or section 80HHA] 7 [or section 80HHB 8 [or section 80HHC 9 [or section 80HHD]]] 10[or section 80-I] 11[or section 80-IA]] 12*** 13***], the deduction under sub-section (1) of this section, in relation to the sums specified in clause (a) or clause (b) or clause....
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....Section 2(9) "Apex Society" means (a State level registered society) whose area of operation extends to the whole of the State of Tamil Nadu and which has as its principal object, the promotion of the principal objects of, and the provision of facilities for the operations of, other registered societies affiliated to it and classified as an apex society by the Registrar; (9) "central society" means a registered society whose area of operation is confined to a part of the State of Tamil Nadu and which has as its principal object, the promotion of the principal objects of, and the provisions of facilities for the operations of, other registered societies affiliated to it and classified as a central society by the Registrar and includes any registered society notified by the Government as a Ccntral society. 36. Thus, only if the appellant is neither an "Apex Society" or a "Central Society", as defined above, it will not be entitled to the benefit of the deduction under Section 80 P(2)(b)(i) of the Income Tax Act, 1961. 37. There is no discussion as to whether the petitioner is an "Apex Society" or a "Central Society". Instead, the case was argued on the strength of the G.O....