R.K. Deshpande, J. - (1.) The question involved in this petition is whether the members of the petitioner-association, who are the contractors of Tendu leaves (a forest produce), are entitled to claim exemption under sub-section (1A) of Section 206C of the Income Tax Act, 1961 from the collection of tax at source from them by the seller, namely, the Forest Department of the State of Maharashtra?
(2.) Notice for final disposal of the matter was issued by this Court on 6-2-2019 and the parties were heard finally by consent. Rule. The petition is being disposed of finally.
(3.) The petitioner-association is registered under the Societies Registration Act, 1860. The members of the petitioner-association are registered Tendu contractors having separate registrations under the Maharashtra Forest Produce (Regulation of Trade) Act, 1969 (for short, "the Regulation of Trade Act") and the Maharashtra Forest Produce (Regulation of Trade in Tendu Leaves) Rules, 1969. The Tendu leaf is a "forest produce" within the meaning of the Indian Forest Act, 1927 and it is grown naturally in the forest areas. The Tendu leaves are used for manufacture of bidi.;