The assessee, a registered co-operative society formed in the year 2001 for enabling financial and social welfare of toddy tappers and workers for tapping and selling toddy within the Hosdurg jurisdiction, claimed exemption under section 80P(2)(a)(vi) of the Income-tax Act, 1961. The AO denied the said exemption on ground that assessee-society was granted registration as a miscellaneous society and, thus, could not be treated as a society engaged in collective disposal of labour of its member. On appeal, the assessee contended that toddy vending by members of assessee-society was for marketing agricultural produce grown by its members which was dealt in sub-clause (iii) of section 80P(2)(a), therefore, its claim for deduction of income earned by society under section 80P(2)(a) was legitimate. The Tribunal merely upheld the decision of the AO. On appeal to the High Court held that  the Tribunal was right in holding that the assessee-society could not be considered a co-operative society engaged in the collective disposal of labour of its 2016 members as contemplated under section 80P(2)(a)(vi) of the Act and therefore was not eligible for deduction under section 80P of the Act. Decision in Peravoor Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2016) 380 ITR 34 (Ker) (HC ) was followed. That on the issue of eligibility of the assessee for deduction under section 80P(2)(a)(iii) of the Act the matter was to be remitted to the Tribunal for consideration and disposal, in accordance with law. (AY.  2009 -10, 2010 -11 , 2011 -12  )