MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit , , IN INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE . . , . . , BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER M.A. No. 52 Ind 2016 Arising out of . . . I.T.A. No.52 Ind 2016 Assessment Year: 2009-10 M s Ujjaini Beej Utpadak Sahakarita Maryadit Ujjain PAN AABFC 8607N :: Appellant Vs Income Tax Officer 1(1) Ujjain :: Respondent Appellant by Shri Prakash Jain Respondent by Shri Mohd. Javed 23.9.2016 Date of hearing 20.10.2016 Date of pronouncement O R D E R PER SHRI D.T. GARASIA, JM This miscellaneous application is filed by assessee on ground that while deciding appeal, Hon'ble Bench has decided issue on ground that 1 MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit assessee had no jurisdiction to sell seeds outside jurisdiction and if assessee has sold its goods, it is violation of bye-laws. Therefore, deduction u s 80O(2)(iii) of Act was not allowed by revenue authorities. Therefore, appeal was dismissed. 2. Before us, learned counsel for assessee submitted that while deciding this appeal, Tribunal has overlooked jurisdiction of society and as per bye-laws, there is no prohibition provided in Act that society cannot sell goods outside Ujjain. Moreover, in bye-laws it is stated that jurisdiction of society is limited to membership of society and not sale and distribution of society, therefore, bye-laws did not prohibit assessee society to sell goods outside jurisdiction. Therefore, miscellaneous application may be allowed. 2 MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit 3. On other hand, learned DR relied upon same submissions and submitted that bye-laws of society speak that assessee s jurisdiction is only Ujjain district and it can take only members from Ujjain district and society has to distribute seeds to respective members only. Therefore, there is no ambiguity in order of Tribunal. miscellaneous application may, therefore, be dismissed. 4. We have heard rival contentions of parties. We have also gone through bye-laws of society and bye-laws of society say that assessee society is cooperative society engaged in production and marketing of certified seeds. society is engaged in procurement of soyabean seeds from its members which are supplied to members of society only. No technical processing has been carried out by society but seeds are 3 MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit cleaned and graded according to quality and whole activity is carried out as per provisions of various Acts. During financial year assessee has received subsidy of Rs.16,75,849 -. We find that as per Act, these activities have to be carried out only in Ujjain district and cooperative society has to procure soyabean seeds from its members only and it is to be supplied to members of society only. society is not permitted to procure soyabean seeds from outside members of society. Similarly, society is not permitted to sell soya seeds to anybody except Ujjain Beej Sangh Society. In instant case, if assessee has sold soyabean seeds outside jurisdiction of Ujjain then it is violation of bye-laws and cooperative society has no jurisdiction to sell soyabean seeds outside Ujjain district. If Ujjain Cooperative society sells soyabean 4 MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit seeds to non-members and outside Ujjain district then this activity is not carried out as per M.P. Cooperative Act. basic concept of deduction u s 80O(2)(iii) of Act is to promote cooperative movement and to give its members benefit of cooperation and they may not subject to any unnecessary expenses of their members, therefore, Government was conscious to promote cooperative movement. They were given subsidy to carry out this movement and if they collect soyabean seeds and sell same outside Ujjain, it tantamounts to violation of Ujjain Beej Utpadak Sahkari Mandiya bye-laws. We also observe that society is created by M.P. Cooperative Societies Act and it is governed by that Act. Therefore, as per admission of assessee, it has sold seeds outside jurisdiction, therefore, assessee society is not eligible for deduction u s 80P(2)(iii) of Act. 5 MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit 5. In result, miscellaneous application is dismissed. order has been pronounced in open Court on 20 October, 2016. Sd - sd - (O.P.Meena) (D.T.Garasia) Accountant Member Judicial Member Dated : 20 October, 2016. Dn 6 MA No. 52 Ind 2016 M s Ujjain Beej Utpadak Sah.Maryadit 7 M/s Ujjaini Beej Utpadak Sahakarita Maryadit v. Income-tax Officer 1(1), Ujjain