SURENDRA KUMAR SHARMA vs VIKAS ADHIKARI

The Supreme Court examined the constitutional validity 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 marketing agricultural produce. The Court held that the exemption under this section is limited to co-operative societies that directly market the agricultural produce of their members, thereby affirming the interpretation established in Assam Cooperative Apex Marketing Society v. CIT. Consequently, the appeal was dismissed, upholding the tax reassessment of the appellant society for the assessment years 1986-87 to 1994.