1978 (8) TMI 75

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....ntitled to exemption under s. 81(i)(c) in respect of its income from marketing of agricultural produce of its members after processing it with the aid of power ? " The above question arises in the following circumstances : The assessee is a co-operative society and is engaged in the marketing of the agricultural produce of its members, among other activities. During the accounting years relating to the assessment years in question, the assessee marketed certain quantity of rice grown by its members after hulling it in its mill which was run by power. Similarly, it had marketed the oil derived from the groundnut grown by its members after converting it into oil in its expeller run by power. During the assessment years in question, the asse....

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....ty engaged in carrying on the business of banking or providing credit facilities to its members ; or (b) a society engaged in a cottage industry ; or (c) a society engaged in the marketing of the agricultural produce of its members ; or (d) a society engaged in the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members ; or (e) a society engaged in the processing without the aid of power of the agricultural produce of its members ; or (f) a primary society engaged in supplying milk raised by its members to a federal milk co-operative society : Provided that, in the case of a co-operative society which is also engaged in activities other than tho....

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....five different heads of exemption enumerated in the section. Each is a distinct and independent head of exemption. Whenever a question arises whether a particular category of income of a co-operative society is exempt from tax, it will have to be seen whether such income falls within any of the several heads of exemption ; if it falls within any one head of exemption, it would be free from tax notwithstanding that the conditions of another head of exemption are not satisfied and such income is, therefore, not free from tax under that head of exemption : vide U.P. Co-operative Bank Ltd. v. CIT [1966] 61 ITR 563 (All)." The expression " marketing " appearing in cl. (c) of s. 81(i) is an expression of wide import. In order to make agricultura....