( 1 ) ANJANEYULU, J:- A short but interesting question arises in this reference made by the Income Tax Appellate Tribunal under Section 256 (1) of the Income Tax act, 1961 (for short the Act ). The question referred is: "whether on the facts and in the circumstances of the case, the assessee is eligible for the exemption under section 80-P (2) (a) (iv) of the Income tax Act, 1961?".

( 2 ) THE assessee is the Guntur District co-operative Marketing Society. It carries on business inter alia in the supply of fertilisers to its members as well as non- members under a scheme devised by the government of Andhra Pradesh in G. O. Ms. No. 541. Food and Agriculture Department, dated 7th March, 1974. The assessees accounts are closed on 30th June of each year. In the previous year relevant for the assessment year 1970-71, the assessee supplied fertilisers of the value of Rs. 36,76,327 to its members; the value of fertilisers supplied to non-members was rs. 83,13,793/ -. Jn the income tax return filed for the assessment year 1970-71, the assessee claimed that the profit arising on the supply of above fertilisers to the members as well as non-members is not liable to be included, as it qualif

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