- (1.) THE controversy here is with regard to the interpretation of the provisions of Section 80p (2) (a) (iii) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), which reads as under : "80p. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in Sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in Sub-section (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. . . . (iii) the marketing of the agricultural produce of its members, or. . . "
(2.) THE point at issue is whether these provisions render non-taxable the profits earned by the assessee, Haryana State Co-operative Supply and Marketing Federation Limited, by the sale of wheat-gram and other agricultural produce.
(3.) BEFORE proceeding further, it deserves mention that the members of the assessee-federation are district wholesale co-operative societies or other co-operative institutions which do not possess agricultural land of their own. The members of these district co-operative societies are, in turn, the primary co-operative societies with farmers being their members.;