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2016 (3) TMI 357 - AT - Income TaxAddition on account of DCS development expenses - Held that:- As decided in assessee's own case one of the objectives of the respondent - assessee is to carry out such activities as may be conducive for the promotion of the dairy industry and improvement and protection of milk animals and in pursuance of the said objective, it has to run technical administrative, financial and other necessary sport to the societies. The respondent - assessee collects milk from its member unions i.e. primary dairy cooperative society (DCS) and sells the milk and milk products to the consumer under its brand name ‘SARAS’ . For increasing the procurement of milk and protecting the dairy farmers, it has to launch various schemes for inducing more and more milk produces to join the primary dairy cooperative society and for this purpose, it has incurred expenditure and thus, in our view, these expenses are directly related to the business of the respondent - assessee and incurred for commercial expediency. It is also a finding of fact that the respondent - assessee has also charged ‘Cess’ @ 1% of the sale value from milk unions for which receipts of ₹ 9,12,27,490/- have been offered as income of the assessee and when income has been offered by the respondent - assessee then the said expenditure is certainly allowable as business expenditure. - Decided in favour of assessee
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