https://www.taxtmi.com/caselaws?id=9636 The High Court of Bombay ruled in an appeal by the Revenue that non-refundable deposits and various funds collected by an assessee-society are not trading receipts under the Income-tax Act. Interest payable on such deposits is considered an expenditure. Deductions for specific funds like the Chief Minister's Relief Fund and Education Fund were also not treated as trading receipts. The court upheld the treatment of the Cane Development Fund as income for the assessee-sugar factory but directed a reevaluation of the Area Development Fund due to insufficient information on its utilization. The appeal was partly allowed with instructions for further assessment. en-us Mon, 08 Aug 2005 00:00:00 +0530 Sun, 28 Jun 2009 10:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9636 The High Court of Bombay ruled in an appeal by the Revenue that non-refundable deposits and various funds collected by an assessee-society are not trading receipts under the Income-tax Act. Interest payable on such deposits is considered an expenditure. Deductions for specific funds like the Chief Minister's Relief Fund and Education Fund were also not treated as trading receipts. The court upheld the treatment of the Cane Development Fund as income for the assessee-sugar factory but directed a reevaluation of the Area Development Fund due to insufficient information on its utilization. The appeal was partly allowed with instructions for further assessment. Case-Laws Income Tax Mon, 08 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9636