2006 (9) TMI 155

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..... or the opinion of this court: "Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal is correct in law in holding that the assessee is not entitled to deduction for liability for market fee on the sale of sugar and molasses?" The reference relates to the assessment years 1976-77 and 1977-78. Briefly stated the facts giving rise of the present reference are as .....

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..... unal. During the hearing of the appeal before the Tribunal, the learned Authorised Representative for the assessee had submitted that similar issue had arisen in the appeal relating to the assessment year 1980-81. It was pointed out that vide order passed in I. T. A. No. 586 (Alld) of 1984, relating to the assessment year 1980-81 the Tribunal had held that the assessee is liable to pay the market .....

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..... by the assessee is not allowable, but the assessee wants to keep the matter alive. The assessee's representative had also pointed out that the assessee had purchased sugar cane for Rs. 2,38,95,498 and on account of such purchases, the market fee at 1 per cent. comes to Rs. 2,38,954 and the claim to the extent is allowable. It was also pointed out that the liability for the year in question stands .....

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..... chased by the assessee in the market area. We, therefore, accept the assessee's claim to that extent and direct the Assessing Officer to allow the liability for payment of market fee to the extent of Rs. 2,38,581.26." Thus the deduction claimed for liability for market fee on the sale of sugar and molasses was not accepted by the Tribunal as well. During the assessment year 1977-78, the assess .....

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..... herefore, was entitled for deduction for market fee on such sale. However, learned counsel has not been able to substantiate his case as to whether sugar and molasses had been notified under the provisions of the Bihar Agricultural Produce Markets Act, 1960, on which any market fee was payable. In the absence of any such provision, the Tribunal was justified in holding that there is no liability f .....

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