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2009 (12) TMI 9 - HIGH COURT OF ALLAHABADRevenue versus Capital - the deductions made from the cane growers at the rate of 35 paise per quintal towards loss equivilisation and capital redemption fund - in reassessment proceeding, the revenue has sought to treat the above amount as income of the assessee who is a co-operative society. In response to show cause notice, a written reply was submitted on the ground that the said amount of collection towards loss equivilisation and capital redemption fund is contribution by the farmers towards share capital and the same being a capital receipt is not at all taxable – held that - the non-refundable and refundable deposits cannot be treated as income of the assessee Society. It has also taken into consideration that there are two kinds of deposits namely special deposit and general deposit. It has found that the obligation to repay is stood annexed to the deposited amount at the time it was received by the assessee subject of course to the occurrence on contingency satisfied by bye laws itself - Shri Chatrapati Sahakari Shakar Karkhana Ltd [2008 -TMI - 6148 - SUPREME Court]
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