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2018 (1) TMI 1712 - HC - Income TaxRevenue receipts - income of cane society - Anshdan & Nirman Yojna Fund received for the sanctioned project and spent by the assessee - Tribunal come to the conclusion that grant in aid that was extended is for a specific purpose and expenditure, therefore, could not be termed as a revenue receipt so as to form part of the total income - HELD THAT:- As decided in UP. UPBHOKTA SAHKARI SANGH LIMITED. [2006 (8) TMI 148 - ALLAHABAD HIGH COURT] the amount in question was given by the State Government for specific purpose. It did not partake of the nature of income of the respondent-assessee. Even if it is to be treated as an income, it would not be liable to be taxed as it is stated that there was diversion of the income by way of overriding title on the said amount by way of a condition to distribute it as the salary to the employees of the bhandars. The assessee in that case was also Cane Cooperative Society. In view of above, the questions of law are answered in favour of the assessee.
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