TaxTMI 
TaxTMI 
2014 (9) TMI 828
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...., "ITAT") by which the ITAT, while affirming the order passed by the Commissioner of Income Tax (Appeal) (for short, "CIT(A)"), has dismissed the appeal filed by the appellant-revenue. Where Dairy Co-operative Society Development charges (DCS) stands allowed. It relates to Assessment Year 2007-08, 2008-09 & 2009-10 respectively. 2. Since the facts and controversy involved is identical, all these three appeals are decided by this common order. 3. The brief facts, as emerging on the face of record, are that the respondent-assessee is an Apex body of the cooperative society and is engaged in the business of promotion, production, procurement, processing and marketing of milk products and in addition to the sale of the milk products, it i....
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....ations with the dairy cooperative societies, such expenses were required to be made and thus are allowable. However, the AO disallowed the same. 5. The matter was carried in appeal by the respondent-assessee by filing appeal before the CIT(A) and a detailed explanation was submitted by the respondent-assessee and it was contended that the respondent-assessee is an Apex body responsible for development of dairy activities in cooperative sector in the State of Rajasthan and on perusal of the bye-laws, it can be noticed that the respondent-assessee is providing necessary help, advise and guidance to various district level and primary level societies engaged in procurement of milk. It was further contended that the district level societies c....
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.... Corporation: (2010) 326 ITR 355 (Kar.). 7. Aggrieved with the deletion of the said amounts, the appellant-revenue preferred appeals before the ITAT and the ITAT also vide order impugned has held that the genuineness of the expenses is not doubted by the appellant-revenue and further held that the expenses were incurred wholly and exclusively for the purpose of business and accordingly dismissed the appeal of the appellant-revenue. This order of ITAT has been assailed by the appellant-revenue before us for all the years. 8. Mr. Y.S. Meena, Dy. Commissioner of Income Tax, present in person on behalf of the appellant-revenue, submitted that there was no connection/ co-relation of incurring such huge amount by the respondent-assessee on ....
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....ivities for promoting production, procurement, processing and marketing of the milk and milk products for economic development of the animal husbandry/farming community. 3.2.Development and expansion of such other applied activities as may be conducive for the promotion of the Dairy Industry, improvement and protection of such milch animals and economic betterment of those engaged in milk production. 3.2.(7)advise, guide, assist and control the member milk unions in all respects of management, supervision and audit functions; 3.2.(8)purchase or assist in purchasing raw material, processing material etc; or to collaborate with some one if need arises; 3.2(12)promote the organization of primary societies and assist members in orga....
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....perative society (DCS) and sells the milk and milk products to the consumers under its brand name "SARAS". For increasing the procurement of milk and protecting the dairy farmers, it has to launch various schemes for inducing more and more milk producers to join the primary dairy co-operative society and for this purpose, it has incurred expenditure and thus, in our view, these expenses are directly related to the business of the respondent-assessee and incurred for commercial expediency. It is also a finding of fact that the respondent-assessee has also charged 'Cess' @1% of the sale value from milk unions for which receipts of Rs. 9,12,27,490/- have been offered as income by the assessee and when income has been offered by the res....