These appeals by department are against grant of deduction under section 80P (2) (a) (vii) of Income-tax Act, 1961 ('the Act'). 2. assessee is co-operative society by name Vidarbha Vibhagiya Macchhimar Sahakari Sangh Ltd., Nagpur, engaged in business of fishing and allied activities. ITO declined to grant deduction under section 80P (2) (a) (vii) as it did not satisfy conditions laid down in proviso to section 80P (2) (a) (vii). It was his view that President of society was given vote as member in addition to casting vote enjoyed by him as President. Shri Jaitram Barve was President of society during relevant years and he was also member of Parliament and he did not do any fishing activity. His stay in Nagpur was for occasional periods only because of his association with various all-India bodies and federations, nor did contribute any labour, nor could it be said that he was engaged in 'allied activities' as envisaged in sub-clause (vii) of section 80P (2) (a). Before AAC, ITO raised further ground, viz., that rules and bye-laws of society granted voting rights to various primary societies which are members of assessee-society whereas proviso to sub-clause (vii) of section 80P (2) (a) envisages only voting rights for individuals, co-operative societies which provide financial assistance and he State Government. ITO was also of view that society was not entitled to deduction under section 80P (2) (c) as its case fell under section 80P (2) (a) (vii). learned AAC allowed appeal of assessee under section 80P (2) (a) (vii). department is aggrieved over decision. 3. Before us, Shri G. M. Deulkar submitted that President of society was not engaged in activities specified in sub-clause (vii) read with proviso thereto, i.e., contribution of manual labour, fishing or allied activities. bye- laws of society extended voting power to primary societies and conditions specified in proviso to section 80P (2) (a) (vii) are violated. He relied on decision of Allahabad High Court in CIT v. U.P. Co-operative Cane Union Federation Ltd. (1980) 122 ITR 913. 4. Shri S. R. Ozha for assessee submitted that Shri Barve was devoting his time and attention to society in his capacity as President and was as matter of fact supervising accounts and other activities of society, besides providing valuable assistance in marketing of product. Therefore, merely because Shri Barve has not gone to river or sea with fishing net in his hand, exemption should not be denied. As for contention of ITO that primary societies have been admitted as members, he submitted that assessee is federal society formed for purpose of promoting fishing and allied activities and in pursuance of these objects, primary societies have been admitted as members in order to reach out to large section of fishermen and in this context, word 'individual' should be construed in equitable manner so as to render justice to societies which are really engaged in activities falling within sub-clause (vii) of section 80P (2) (a). He further submitted that member-societies represent fishermen folk who are themselves members in said societies and in fact these primary societies became members in only to extend benefit of apex society to their members. He relied on decisions in cases of R. B. Jodhamal Kuthiala v. CIT (1971) 82 ITR 570 (SC), Ajit Investment Co. (P.) Ltd. v. K. G. Malvankar (1974) 95 ITR 547 (Bom.) and Addl. CIT v. Indian Co-operative Union Ltd. (1982) 134 ITR 108 (Delhi). 5. We have considered rival submissions and have gone through materials on record. AAC has stated in paragraph 5 of his order that books of account and other documents were produced before him to show that Shri Barve was exercising control and supervision over activities of society. In paragraph 4 of his order, it is found that assessee produced before him copies of annul report of society for several years from which it could be gathered that society had started selling fish to buyers from Calcutta only on advice of Shri Barve and same resulted in substantial profit. department has not let in any evidence to controvert these facts before us. Whether assistance or advice rendered by President in marketing sphere of society's activities would fall within sub-clause (vii) of section 80P (2) (a) is question to be considered. Sub-clause (vii) is as follows: "fishing or allied activities, that is to say, catching curing processing, preserving, storing or marketing of fish or purchase of materials and equipment in connection therewith for purpose of supplying them to its members," word 'marketing' might be relevant in this context. learned commentrators Chaturvedi & Pithisaria's Income-tax law, Third end, Vol 2, p. 2222 are of view that marketing function involves exchange functions such s buying and selling, physical functions such as storage, transportation, processing and commercial functions such as standardisation, financing and market intelligence. From annual report, it is clear that President was actively responsible for providing market intelligence with help of which fish were sold to Calcutta buyers. Therefore, we uphold contention of assessee that President was engaged in activities specified in sub-clause (vii) of section 80P (2) (a) read with proviso thereto. In fact, it is our considered view that when President goes through books of account and exercises supervision, apart from intelligent appreciation of matter involved, physical energy will also have to be expanded such as eyes have to scan through accounts, hands have to be exerted to sign or initial pages, apart from turning pages of books-wherever physical energy is exerted, not with aid of power, exertion of manual labour is involved. It could be that in such cases, apart from manual energy, mental faculties are also pressed into service, but that factor will not divest itself of contribution of manual labour. We, therefore, reach conclusion that President of society has contributed labour-manual labour-and also engaged himself in marketing activities by providing market intelligence and, thus activities enumerated in sub-clause (vii) and conditions laid down in clause (1) of proviso are satisfied. 6. next point to be considered is whether conferment of voting rights to various primary societies, which are members of assessee society, would be valid ground for denial of exemption. Clause 8 of bye-laws of society recognizes three categories of members as follows: 1. Fishermen Co-operative Society: Class 2. Fishermen by birth or profession; persons connected with business of fishing; and well-wisher: Class B 3. Nominal members (no voting right). It has been provided in clause 32 of bye-laws that each member of society attending annual general meeting will have one vote. general body to be elected will consist of (1) one representative from each primary society which is member, i.e., Class A, and (2) representative of members from Class B at rate of one representative for 25 members. It is ITO's contention that proviso to section 80P (2) (a) restricts voting power only to individual members of society, apart from State Government or co- operative credit societies, and as primary societies which are non-credit societies are members in assessee-society, conditions stipulated in proviso cited supra are violated. assessee, on other hand, pleads for liberal interpretation. 7. Proviso to section 80P (2) (a) reads as follows: "Provided that in case of co-operative society falling under sub- clause (vi) or sub-clause (vii), rules and bye-laws of the, society restrict voting rights to following classes of its members, namely: (1) individuals who contribute their labour or, as case may be, carry on fishing or allied activities; (2) co-operative credit societies which provide financial assistance to society; (3) State Government;" interpretation of word 'individual' acquires significance in this context. Does it refer to human beings alone or is it wide enough to include group of persons forming unit? In case of Banarasi Dass v. WTO (1965) 56 ITR 224, their Lordships of Supreme Court approvingly quoted observations in majority decision in case of CIT v. Sodra Devi (1957) 32 ITR 615, as follows: "... 'It has been held', observed Bhagwati, J. (as he then was), who spoke for majority, that word "individual" includes corporation created by statute, e.g., university or bar council, or trustees of baronets trust incorporated by Baronets Act. It would also include minor or person of unsound mind." (p. 233) Therefore, we have no hesitation in holding that term 'individual' should be interpretated as including group of persons forming unit. primary societies are composed of fishermen only as their members. Contribution of manual labour and carrying on fishing or allied activities are done by members of primary societies also. 8. In Indian Co-operative Union Ltd.'s case (supra), it was held that co- operative society can in way be likened to family constituted by its members. When members of co-operative society are engaged in manufacture of goods in cottages or dwelling houses, it can be said that family constituted by its members is engaged in cottage industry. Of course, in that case, society was not allowed deduction on some other grounds. Even though technically individual members constituting society are different and distinct from society itself, as was urged by learned departmental representative relying on decision of Allahabad High Court in U.P. Co- operative Cane Union Federation Ltd.'s case (supra), we are inclined to take cue from decision of Delhi High Court in Indian Co-operative Union Ltd.'s case (supra) and also in context of Supreme Court's interpretation of word 'individuals'. primary societies which were given voting rights would fall within meaning of term 'individual' and inasmuch as members of primary societies are fishermen contributing labour or otherwise engaged in fishing or allied activities, we have no hesitation in holding that conditions prescribed in proviso to section 80P (2) (a) are complied with. Therefore, we uphold order of AAC. 9. In result, departmental appeals for both years fail and are dismissed. *** INCOME TAX OFFICER v. VIDARBHA VIBHAGIYA MACCHHIMAR SAHAKARI SANGH