BROACH DISTT. CO-OPERATIVE COTTON SALESGINNING & PRESSING S vs COMMISSIONER OF INCOME TAX, AHMEDABAD.

The Supreme Court held that ginning and pressing of cotton by a co-operative society is integral to the marketing process and qualifies for exemption under Section 81(i)(c) of the Income Tax Act, 1961. The Court determined that such activities are ancillary to marketing and not separate, thus the proviso to Section 81(i) does not apply. The High Court's ruling against the exemption was overturned, affirming the assessee's entitlement to tax exemption for profits from ginning and pressing activities.