TMI Blog2010 (12) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... the Samitis to govern it. The Samities are a body established and incorporated under section 12 of the Mandi Act - The amount of Mandi Shulk as well as Development Cess sent by the different Mandi Samitis to the State Agricultural Produce Market Board is a utilisation of all the receipts. The amount of Mandi Shulk as well as Development Cess sent by the different Mandi Samitis to the State Agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Produce Markets Board (the Board) under statutory obligation is application of its receipts entitling exemption under section/allowance from the income. 2. In all these cases, the Samitis in their returns claimed exemption/allowance for the amount sent by them to the Board under the Mandi Act. 3. Among others, the Assessing Officer disallowed the amount as according to him, it was not u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fairs in agricultural produce markets. The Mandi Act was enacted to set it right and to see that the agricultural producers got their due. 8. The Mandi Act envisages market areas in the State and the Samitis to govern it. The Samities are a body established and incorporated under section 12 of the Mandi Act. 9. The Mandi Act also envisages establishment of the Board. Among other powers and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent by the Samitis to the Board under the statutory duty. It cannot be returned back to them. It is ultimately applied for the development of market yards, samitees, and to improve management as well as to ensure better deal to the agricultural producers. 14. Under the Mandi Act, the Board has overriding title. The amount sent to the Board is utilisation and application the money received by S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitees and it is proper application of the money; There is no illegality in the order of the Income Tax Appellate Tribunal and Commissioner (Appeals). Conclusions 18. Our conclusions are as follows: (i)The amount of Mandi Shulk as well as Development Cess sent by the different Mandi Samitis to the State Agricultural Produce Market Board is a utilisation of all the receipts; and ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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