ASSAM CO OPERATIVE APEX MARKETING SOCIETY LIMITED Vs. ADDITIONAL COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question of law has been referred by the Income-tax Appellate Tribunal, Gauhati Bench, hereinafter referred to as "this Tribunal", under Section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act" :

(2.) THE facts of the case may be briefly stated as follows :

(3.) THE Government of Assam, for facilitating proper procurement of paddy, entrusted the work to the assessee-society. THE price of paddy and rice was fixed by the Government and the village service co-operative societies purchased paddy at fixed price and delivered it to the godowns of marketing societies at different places. THE primary marketing societies passed on the paddy thus procured to the apex society, that is, the assessee, which despatched it according to the Government instructions to the rice mills and other allottees. THE co-operative societies were being remunerated at the rate of Re. 1 per maund of paddy procured. This was divided amongst the co-operative societies. THE assessee-society got 19 paise, the service-societies got 19 paise and the balance 62 paise went to the primary marketing societies.