R.K. Agrawal, J. - (1.) The Tribunal, Allahabad has referred the following questions of law under Section 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act") for opinion to this Court : RA No. 20/All/1989 Whether, on the facts and in the circumstances of the case, the Tribunal was, in law, justified in holding that the assessee was entitled to relief under Section 80P(2)(iv) in respect of gypsum section and seed section ? RA No. 30/All/1989 Whether, on the facts and in the circumstances of the case, the Tribunal was, in law, justified in holding that the assessee was entitled to relief under Section 80P(2)(iv) in respect of fertilizer and seed section ?
(2.) The reference relates to the asst. yrs. 1977-78, 1978-79 and 1980-81.
(3.) Briefly stated, the facts giving rise to the present reference are as follows : The respondent-assessee is an apex co-operative society of Uttar Pradesh. Its members are the district level co-operative societies and the Government of Uttar Pradesh. The members of the respondent-society do not carry any agricultural activities by themselves. The respondent-society sold gypsum, seeds and fertilizers and other items to its member-society. It claimed exemption under Section 80P(2)(a)(iv) of the Act. The claim was not accepted by the assessing authority on the ground that these items have been supplied by the respondent to its member-society who in turn distributed them to the cultivators irrespective of the fact that such cultivators are members of the society or not. Feeling aggrieved, the respondent preferred separate appeals before the CIT(A) who had accepted the claim of the respondent-assessee, which order has been upheld by the Tribunal.;