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TMI Blog2023 (10) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 in the hands of assessee for specific purpose of being used in the developmental activity so Ld CIT(A) has rightly held them to be not falling in the category of income for purpose of Section 2(24) of the Act and that being the case the status of assessee being local authority or otherwise was not of consequence. The grounds raised by the Revenue have no substance and the appeal of the Revenue is dismissed. - Sh. Shamim Yahya, Accountant Member And Sh. Anubhav Sharma, Judicial Member For the Appellant : None For the Respondent : Sh. Vivek Kumar Upadhyay, Sr. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e U.P. Sugar Cane Act, 1953 by the U.P. State Govt., under the supervision of the Cane Commissioner to carry out specific development activities in the areas assigned to it. It is being governed by its provisions and rules made under it. For this purpose funds are placed at its disposal by the State Govt. In addition to the funds from the State Govt., the appellant receives contributions/commission from sugar mills./cane cooperative societies operating in the assigned area as per the policy of the State Govt, to carryout various developmental activities as approved by the Cane Commissioner under the said Act. After carrying out part specified development activities like construction of roads etc. certain amounts left at the end of the year, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d back for the purpose of same activity. The functioning of the appellant is governed by various provisions of the U.P. Sugar Cane (Regulation of Supply and purchase) Act, 1953 and the Rules made there under. It has not been siphoned off or distributed/utilized the surplus or funds at its disposal for some other purpose. Further the appellant has produced a copy of Circular dated 24.5.2006 of the Cane Commissioner where it is clarified that these councils are to be run on no profit no loss basis i.e. funds remaining unspent during the year is to be carried to the following year to be used for the specified development activities. Further, it is relevant to go through Rule 49A of the U.P. Sugarcane (Regulation of supply and purchase) R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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