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TMI Blog2009 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... a, Saharanpur 3. Income Tax Appeal No.300 of 2000 The Commissioner of Income Tax, Meerut and another Versus M/s The Kisan Cooperative Sugar Factory Ltd. Sarsawa, Saharanpur 4. Income Tax Appeal No.292 of 2000 The Commissioner of Income Tax, Meerut and another Versus M/s The Kisan Cooperative Sugar Factory Ltd. Sarsawa, Saharanpur 5. Income Tax Appeal No.293 of 2000 The Commissioner of Income Tax, Meerut and another Versus M/s The Kisan Cooperative Sugar Factory Ltd. Sarsawa, Saharanpur 6. Income Tax Appeal No.294 of 2000 The Commissioner of Income Tax, Meerut and another Versus M/s The Kisan Cooperative Sugar Factory Ltd. Sarsawa, Saharanpur 7. Income Tax Appeal No.297 of 2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. These appeals arise out of re-assessment proceedings initiated u/s 147 of Income Tax Act. The facts from the appeal relating to the assessment year 1972-73 are being noticed. The original assessment was completed at net loss of Rs.33,70,144/- including unabsorbed losses of earlier years. During the year under consideration the assessee collected a sum of Rs.4,25,182/- representing the deductions made from the cane growers at the rate of 35 paise per quintal towards loss equivilisation and capital redemption fund. By means of re-assessment proceeding, the revenue has sought to treat the above amount as income of the assessee who is a co-operative society. In response to show cause notice, a written reply was submitted on the ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of receipt on the facts as is found by them is being disputed in the present appeal. The CIT (Appeal) after reproducing the relevant bye laws of the Society has held that the deposits made by the cane growers are firstly towards capital redemption fund. The deposits have been raised for the specific purposes as indicated by the bye laws. The deposits are being retained in the individual account, therefore, he is the owner of the deposits. More so the character of money so retained is attached with the obligation of conversion into share capital capital and it continued to be liability of the assessee and is not treating receipt. The amount so retained, remained in the account of Society as liability. More or less the similar findin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as income of the assessee Society. It has also taken into consideration that there are two kinds of deposits namely special deposit and general deposit. It has found that the obligation to repay is stood annexed to the deposited amount at the time it was received by the assessee subject of course to the occurrence on contingency satisfied by bye laws itself. We are of the considered opinion that the facts of the case on hand are parallel to the facts of the case of S. Sahkari Sakahar Karkhana Ltd. (supra). This being so, we find that the Tribunal has not committed any illegality in rejecting the appeals filed by the revenue. In the result there is no merit in the appeals.
The appeals are dismissed.
No order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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