2002 (1) TMI 35

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... assessee is a co-operative society. It is running a sugar mill and a distillery. It filed its returns of income for the assessment years 1976-77 to 1979-80. It claimed deduction of certain amounts of money on account of supply of pesticides to sugarcane growers at a concessional rate. The Assessing Officer did not accept the claim of the society on the ground that "the expenses were not directly a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ciety is of revenue nature?" Admittedly, the assessee utilised sugarcane for production of sugar. It has an interest in the growth of sugarcane so that the requisite quantity is available and the yield of sugar is good. Thus, it provides pesticides at a concessional rate to the farmers. The obvious intent and purpose of the assessee is to promote its own commercial interest. Nothing has been poin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... basic raw material for production of sugar, the expense on supply of pesticides at concessional rates was directly connected with the assessee's business. No other point has been raised. In view of the above, the question is answered in favour of the assessee and against the Revenue. In the circumstances of the case, the parties are left to bear their own costs.
Case laws, Decisions, Judgem .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X