National Agricultural Co-Operative ... vs Union Of India & Ors

The Supreme Court examined the constitutional validity and interpretation of Section 80P(2)(a)(iii) of the Income Tax Act, 1961, which pertains to the deduction of profits made by co-operative societies engaged in the marketing of agricultural produce. The Court held that the exemption under this section is limited to co-operative societies that directly market agricultural produce produced by their members, thereby affirming the interpretation established in Assam Cooperative Apex Marketing Society v. CIT. Consequently, the appeal was dismissed, upholding the reassessment of the appellant's profits for the relevant assessment years.