IT : Providing subsidy towards pesticides, seeds, etc. being monetary benefits to its members/farmers in order to help them to grow more sugarcane was only for business purpose of cooperative society; expenditure was to be allowed
■■■
[2014] 51 taxmann.com 129 (Ahmedabad - Trib.)
IN THE ITAT AHMEDABAD BENCH 'D'
Assistant Commissioner of Income-tax
v.
Shree Khedut Sahakari Khand Udhyog Mandli Ltd.*
T.K. SHARMA, JUDICIAL MEMBER
AND D.C. AGRAWAL, ACCOUNTANT MEMBER
IT APPEAL NO. 4096 (AHD.) OF 2007
[ASSESSMENT YEAR 2004-05]
MAY 28, 2010
Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Subsidy) - Assessment year 2004-05 - Assessee-Cooperative society, engaged in production and sale of sugarcane and its by-products, claimed expenditure incurred as sugarcane quality improvement subsidy being monetary benefits provided to its members towards pesticides, seeds and other items - Whether such subsidy can be granted even without authority of bye-laws - Held, yes - Whether sale of pesticides, seeds and other items at a reduced price to farmers/members in order to help them grow more sugarcane was directly for business purpose of assessee-society and, hence, same was to be allowed - Held, yes [Para 8] [In favour of assessee]
■■■
[2014] 51 taxmann.com 129 (Ahmedabad - Trib.)
IN THE ITAT AHMEDABAD BENCH 'D'
Assistant Commissioner of Income-tax
v.
Shree Khedut Sahakari Khand Udhyog Mandli Ltd.*
T.K. SHARMA, JUDICIAL MEMBER
AND D.C. AGRAWAL, ACCOUNTANT MEMBER
IT APPEAL NO. 4096 (AHD.) OF 2007
[ASSESSMENT YEAR 2004-05]
MAY 28, 2010
Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Subsidy) - Assessment year 2004-05 - Assessee-Cooperative society, engaged in production and sale of sugarcane and its by-products, claimed expenditure incurred as sugarcane quality improvement subsidy being monetary benefits provided to its members towards pesticides, seeds and other items - Whether such subsidy can be granted even without authority of bye-laws - Held, yes - Whether sale of pesticides, seeds and other items at a reduced price to farmers/members in order to help them grow more sugarcane was directly for business purpose of assessee-society and, hence, same was to be allowed - Held, yes [Para 8] [In favour of assessee]
No comments:
Post a Comment