Judgment

R. S. PATHAK

( 1 ) THESE appeals by certificate granted by the High Court of Gujarat are directed against the judgment of the High Court answering the following question in favour of the Revenue and against the assessee :-

"whether, on the facts and in the circumstances of the case, the income of the Society from ginning and pressing was exempt under section 81 (i) (c) of the Income-tax Act, 1961, as it stood prior to its amendment on 1/04/1968?"

( 2 ) THE assessee is a co-operative society constituted under the Co-operative Societies Act. The objects of the society intend that it should press cotton and pack the bundles for its individual members as well as other customers, to use its machinery for any useful work of its members, and to sell raw cotton, cotton seeds and other agricultural products. The assessee possesses a ginning and pressing factory to cater to the needs of its members. It gets raw cotton from the members, and gins and presses the cotton for marketing on behalf of its members. For rendering the services of ginning and pressing before selling the goods, the assessee charges the members a certain amount by way of ginning and pressing charges. It also charges