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TMI Blog2009 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... is not in dispute that the assessee(s) provides storage facilities to the members of the Federation(s) carrying on ginning and pressing activities. It appears from the record that, during the relevant years, the Department has been adopting an ad-hoc measure of attributing fifty per cent of the charges payable to the assessee(s) as rental income – In our view, Department has failed to take into a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , ginning and pressing of cotton, fixation of processing rates and godown rent. The rates for ginning and pressing have been defined in the Agreement between the assessee(s) and the Federation(s). A narrow question arises for determination, before us, in this batch of civil appeals filed by the Department is, whether the rate prescribed by the Agreement between the assessee(s) and the Federatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relying upon the judgement of the Bombay High Court in the case of Commissioner of Income Tax vs. Bhandara Zilla Sahakari Kharedi Vikri Sangh Limited reported in 212 I.T.R.124. On the other hand, it is the case of the Department that the assessee(s) has separately credited the godown rent to profit and loss account, hence, on their own showing, the rate under the Agreement with the Federat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and pressing activities. This exercise has not been done by the Department. The rule of fifty per cent cannot be applied as across the board principle. Ordinarily, we would have remitted the matter to the Assessing Officer but it would not be in the interest of justice to remit the cases now after almost fifteen years as it would be impossible for the Assessing Officer to decide the questions rais ..... X X X X Extracts X X X X X X X X Extracts X X X X
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