Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2009 (12) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (12) TMI 10 - SC - Income TaxNature of income - ginning and pressing charges - The assessee(s) have entered into an Agreement which governs conditions of processing, ginning and pressing of cotton, fixation of processing rates and godown rent – held that - it is not in dispute that the assessee(s) provides storage facilities to the members of the Federation(s) carrying on ginning and pressing activities. It appears from the record that, during the relevant years, the Department has been adopting an ad-hoc measure of attributing fifty per cent of the charges payable to the assessee(s) as rental income – In our view, Department has failed to take into account number of factors, namely, the provisions of Cotton Ginning and Pressing Factories Act, 1925, the expenses incurred towards payment of labour charges, etc. – Matter remanded for limited purpose to examine the total income of the assessee(s) and after applying the principle of proportionality,
|