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TMI Blog2005 (8) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... und, Area Development Fund, Cane Development Fund, Hutment Fund, Education Fund, Shri Y.B. Chavan Memorial Trust, and interest on non-refundable deposits by holding that various funds/deposits collected by the assessee-society out of sugarcane purchase price payable to the cane growers are not the trading receipts of the assessee?" - Appeal is partly allowed - The order of the Income-tax Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench in the case of Shri Chartrapati Sahakari Sakhar Karkhana Ltd. reported in [1992] 198 ITR (AT) 78 (Pune) was right in deleting the additions made on account of non-refundable deposits, C.M.'s Relief Fund, Area Development Fund, Cane Development Fund, Hutment Fund, Education Fund, Shri Y.B. Chavan Memorial Trust, and interest on non-refundable deposits by holding that various funds/deposits co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies Act and Rules in Maharashtra, non-refundable as well as refundable deposits are not trading receipts and cannot be added to the income of the society. It also held that interest payable on refundable and non-refundable deposits is also an expenditure of the society and is liable to be deducted from income taking into consideration the Maharashtra Cooperative Societies Act, bye-laws and the Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income of the assessee. The Supreme Court held that the receipts in the form of Area Development Fund always remain with the assessee-society. As there was no material as to how that amount is spent, their Lordships left this point open for fresh determination by the Income-tax Appellate Tribunal. Following the Supreme Court authority in the group of income-tax appeals decided by this court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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