9911796707
TMI Blog2023 (10) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ITO, Ward-1(4), Shamli (hereinafter referred as the Ld. AO). 2. None has appeared for the assessee at the time of hearing, however, there are written submission as received in support of the cross objections. 3. Ld. DR has supported the findings of Ld. AO. 4. It comes up that Ld. AO had made addition on the basis that he was of the view that assessee is not a local authority for the purpose of Section 10(20) of the Act. AO enquired about the status of the assessee if registered u/s 12AA of the Act and thereafter being dissatisfied considered the status of assessee as of juridical person. All receipts, for purposes of developmental work were considered as income u/s 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t passed under Rule 12(2) of the U.P. Sugar Cane (Regulation of Supply and purchase) Rules, 1954. There is no finding in the order of the A.O. that amount at the disposal of the appellant has been spent for the purpose other than the specified work. The appellant has produced copies of income & expenditure statements for various financial years to show that amount remaining unspent at the end of the year has been carriec to the income & expenditure statement of the following year. Accounts of the appellant which have been prepared on receipt basis, have been audited by the Auditors who are independent Government authorities appointed by the Cane Commissioner of the State. The AO has also examined the income & expenditure statement of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Sugar Manufacturing Unit, liable to pay Purchase tax under Section 3 of the Uttar Pradesh Sugarcane (Purchase Tax) Act, 1961 (U.P. Act No. IX of 1961), shall pay to the Council for every quintal of cane purchased by the Unit, commission at the rate of seventeen paise per quintal for the crushing season 1990-91 (w.e.f. 1- 6-1991) till 1994-95 and for the crushing season 1995-96 and onward at the rate of half percent of the minimum statutory cane price. The entire amount of commission will be utilized for the construction of road and other developmental work. " 5. The bench is of considered view that the conclusion of ld. AO was erroneous as with regard to the nature of receipts. The same were commissions received from various sugar mills ..... X X X X Extracts X X X X X X X X Extracts X X X X
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