https://www.taxtmi.com/caselaws?id=449128 Payments by a market committee to the Marketing Board were treated as application of income for statutory development objects, not repayment of an old loan, because the statutory scheme allowed spending on roads and allied development works and the receipts, accounts and balance-sheet entries supported that use. On that basis, the disallowance founded on the loan-repayment theory was unsustainable and the amount was accepted as spent for the committee's statutory purposes. As the disallowance failed, the penalty proceedings based on it also could not survive, with the result favourable to the assessee. en-us Thu, 18 Jan 2024 00:00:00 +0530 Wed, 23 Oct 2024 16:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449128 Payments by a market committee to the Marketing Board were treated as application of income for statutory development objects, not repayment of an old loan, because the statutory scheme allowed spending on roads and allied development works and the receipts, accounts and balance-sheet entries supported that use. On that basis, the disallowance founded on the loan-repayment theory was unsustainable and the amount was accepted as spent for the committee's statutory purposes. As the disallowance failed, the penalty proceedings based on it also could not survive, with the result favourable to the assessee. Case-Laws Income Tax Thu, 18 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449128