On appeal the Court held that absence of finding as to primary society-Expression “primary society” has not been defined in the IT Act, 1961. Expression “primary society” has been defined in s. 2(21) of the Tamil Nadu Co-operative Societies Act, 1983. Only if the assessee is neither an “apex society” or a “central society”, it will not be entitled to the benefit of the deduction under s BOP(2)(b)(1)-is no discussion as to whether the assessee is an “apex society” or a “central society”-AO is directed to re-examine the issue in the light of the definition of the Tamil Nadu Co-operative Societies Act, 1983 and to pass a fresh order in the light of the definition contained in that Act, within a period of six months from the date of receipt of a copy of this order by the AO. (AY. 1989-90, 1992-93)
Salem District Co-Operative Milk Producers Union Ltd v. CIT (2023) 333 CTR 696 (Mad) ( HC)
S. 80P : Co-operative societies-Primary society engaged in supplying milk to federal society-AO is directed to re-examine the issue in the light of the definition of the Tamil Nadu Co-operative Societies Act, 1983 and to pass a fresh order in the light of the definition contained in that Act, within a period of six months from the date of receipt of a copy of this order by the AO. [S.80P(2)(b)(i), 260A]