The Hon’ble Tribunal at the outset found all the requisite details needed for claiming exemption to be on record. On the issue of gross profit, it observed that the assessee purchased sugarcane seeds, agricultural equipment, etc., and supplied them to its members in accordance with the objects of the society and profit from such activity was claimed to be exempt under section 80P(2)(a)(iv) of the Act. Given that there was no evidence to suggest that trading in agricultural equipment was done with persons other than the members, the Hon’ble Tribunal upheld the deduction.

As regards the grants received from the state government the Hon’ble Tribunal held that as far as the grants received have been passed on to the members, deduction was to be allowed. Finally, as regards commission income, entry fee, other income, patte (satte) se income, Upaj Badhotri and Vasooli Kharcha and Cheque book fee, the Hon’ble Tribunal found them to be incidental receipts relating to the business of marketing of agricultural produce of the members therefore eligible for deduction u/s. 80P(2)(a)(iii) of the Act.  (AY. 2014-15)