UDAIPUR SAHKARI UPBOKTA THOK BHANDER LD. vs COMMR.OF INCOME TAX.

The Supreme Court interpreted Section 80P(2)(e) of the Income-tax Act, 1961, determining that a co-operative society engaged in the distribution of controlled commodities under the Public Distribution Scheme qualifies for tax exemption. The Court held that the society's operations, regulated by the State Government, demonstrate that it acts as an agent for the government in distributing essential goods, thus falling within the ambit of the exemption provided under the statute. The appeal was allowed, affirming the society's entitlement to the claimed tax benefits.