TMI Blog2011 (1) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses. The assessee is a co-operative society formed in the year 1973 with objectives to purchase milk from farmers and sell milk products mainly pasteurized milk, butter milk and ice-cream etc. The assessee is running under the guidance of Federation and is with no profit motive with objective of upliftment of small farmers of rural areas. The claim was disallowed by the AO by making observations to the fact that the assessee could not link up the business connection in respect of the above expenses reimbursed to Vasudhara Trust and other two members of the Trust have not borne such expenditure. The assessee furnished details of the expenses which are mainly pertaining to animal husbandry veterinary and administrative expenses pertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 and 2003-04. Addition was accordingly deleted by the learned CIT(A). 3. On consideration of the above facts, we do not find any merit in the departmental appeal. The learned Counsel for the assessee at the outset submitted that departmental appeal on similar ground has been dismissed by ITAT Ahmedabad Bench in the case of the same assessee for assessment year 2002-03 in ITA No.1349/Ahd/2006 dated 11-09-2009 in which in Para 26 it was held as under: 26. After hearing both the parties and on perusal of the record, we find that clause 18 of section 3 of the Bye-laws of the assessee society does empower the assessee society to carry out its objective in collaboration with any other entity, institution or persons. The assessee has plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was paid in cash without deducting TDS. It was submitted that correct figure of the amount is ₹ 40,272/- paid in respect of 9 villages consisting of 84 cases ranging from 6 cases to 13 cases per village. The above amount was deposited through 84 different challans in the State Bank of India, Valsad being recovery charges i.e. Darkhast Money paid to the court in favour of the Civil Court, District Valsad in 84 cases through challans copies of which are available on record. The payment was made which was in the nature of court expenses and the challans did not exceed ₹ 1,000/- in each case which was paid to the State Government and the Court Authorities. Therefore, there was no need of deducting TDS. The assessee produced cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after completion of the tour and the same did not exceed prescribed limit of ₹ 20,000/-. The learned CIT(A) verified the claim of the assessee and found that only one voucher of ₹ 37,182/- was prepared which was in excess of ₹ 20,000/- and accordingly deleted the addition of ₹ 2,640/- by sustaining disallowance in a sum of ₹ 7,436/-. 7. On consideration of the above facts, we are of the view that the learned CIT(A) on proper appreciation of the facts rightly deleted the addition of ₹ 2,640/-. This ground of appeal of the revenue is accordingly dismissed. 8. On Ground No.4, the revenue challenged the deletion of addition of ₹ 75,938/- being made on account of belated payment of provident fund. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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