TMI Blog2014 (9) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... s are directly related to the business of the assessee and incurred for commercial expediency - assessee has also charged 'Cess' @1% of the sale value from milk unions for which receipts have been offered as income by the assessee and when income has been offered by the assessee, then the expenditure is certainly allowable as business expenditure – thus, the order of the Tribunal is upheld – Decided against revenue. - DB Income Tax Appeal No.75/2012, D.B. Income Tax Appeal No.245/2012, DB Income Tax Appeal No.13/2014 - - - Dated:- 25-8-2014 - Ajay Rastogi And J. K. Ranka,JJ. For the Petitioner Mr. Y.S. Meena, Dy. Commissioner of Income Tax ORDER By The Court (Per Hon'ble Ranka, J.): 1. These three Income Tax Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s women/BPL families/ SC/ ST, purchase of automatic milk collection system etc. During the course of scrutiny of the assessment proceedings, when this fact was noticed by the Assessing Officer (for short, AO ), he came, prima-facie, to the conclusion that such claim is not allowable as the respondent-assessee has incurred expenses in respect of primary societies from whom the respondent-assessee was neither having any transaction nor any business connection/consideration and thus the said expenses were incurred on its own and without any business expediency and accordingly a show cause notice was issued as to why the said amount may not be disallowed. 4. The respondent-assessee reiterated that the said expenses are required to be incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the expenses are incurred for new registration of DCS, revival of closed DCS, membership, contribution for women/ BPL families/ SC/ ST families, providing automatic milk stations etc and these allowable u/s 37 (1) of the Act. 6. The CIT(A), after analyzing the evidence on record and finding this fact that the amount paid has not been doubted by the AO. He further came to the conclusion that the expenses are directly related to the business of the respondent-assessee and incurred for commercial expediency and accordingly directed that the said expenses are allowable expenses u/s 37(1) of the IT Act. The CIT(A), while allowing the deduction, relied upon the judgments rendered by the Hon'ble Apex Court in the case of Sassoon J. David ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITAT for consideration of this Court. He also placed reliance on judgment of Kerala High Court rendered in the case of Season Rubber Ltd. Vs. CIT reported in (2009) 311 ITR 15 (Ker) 9. We have considered the submissions of the ld. officer, appearing on behalf of the appellant-revenue and gone through the impugned order as also the order of the lower authorities. 10. In our view, the ITAT as well as CIT(A) have arrived at a finding of fact that the genuineness of the expenses is not doubted by the appellant-revenue and thus, when genuineness of the expenses has not been doubted by the appellant-revenue, then it is a finding of fact. We may further add that the respondent-assessee, as referred to herein above, is an apex body respons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred towards the primary level societies from which it is engaged in procurement of milk. The respondent-assessee has incurred the said amount for increasing the procurement of milk and protecting the dairy farmers from the threat of the private milk vendors, launched various schemes from time to time for inducing more and more milk producers to join milk development cooperative societies in furtherance of its fundamental objectives, which, in our opinion, is certainly in the nature of business expenses. It is also a finding of fact that 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 milch animals and in pursu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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