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Section 80P of the Income-tax Act, 1961 - Deductions - Income of Co-operative societies - Assessment year 1998-99 Where Assessing Officer having noticed that assessee co-operative marketing society, engaged in marketing agricultural produce of its members, was also getting income from hiring its lorries, disallowed exemption on ground that it did not fall under section 80P(2)(a)(iv ), he was not justified in disallowing claim of exemption because even if Assessing Officer was of opinion that case of assessee did not fall under section 80P(2)(a)( iv) since it fell under section 80P(2)(a)(iii ) assessee was entitled for benefit [In favour of assessee] The assessee, a co-operative institution, was registered to promote agricultural activities to give benefit to the farmers who were its members. The Assessing Officer having noticed that the assessee co-operative marketing society, engaged in marketing agricultural produce of its members, was also getting income from hiring its lorries, disallowed exemption on the ground that it did not fall under section 80P(2)(a)( iv). The Tribunal allowed the appeal on the ground that the assessee was also engaged in the marketing of agricultural produce for the benefit of its members. Held that, as held in Addl. CIT v. Ryots Agricultural Produce Co-operative Marketing Society Ltd.[1978] 115 ITR 709 (Kar.), marketing functions may involve exchange functions such as buying and selling, physical functions such as storage, transportation, processing and other commercial functions such as standardization, financing, market, intelligence, etc. Thus, even if the Assessing Officer was of the opinion that the case of the assessee did not fall under section 80P(2)(a)(iv ), since it fell under section 80P(2)(a)( iii) the assessee was entitled for the benefit. CASE REFERRED TO Addl. CIT v. Ryots Agricultural Produce Co-operative Marketing Society Ltd. [1978] 115 ITR 709(Kar.) M. V. Seshachala for the Appellant. A. Shankar for the Respondent. JUDGMENT K. L. Manjunath, J.-This appeal is by the Revenue challenging the legality and correctness of the order passed by the Income-tax Appellate Tribunal, Bangalore Bench in I. T. A. No.…

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