2017 (1) TMI 309

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....y way of this appeal, the appellant has assailed the judgment & order of the Tribunal whereby the Tribunal has allowed the appeal preferred by the assessee and dismissed the appeal of the department. 2. The brief facts of the case are that the respondent-assessee is a co-operative society which purchases milk from primary co-operative society at village level which is pasteurized and sold to co....

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....is Court in para 3, 4 & 5 has observed as under:- "3. Counsel for the appellant has taken us to the reasoning given by the CIT (Appeals) and contended that the issue which reads as under: "In lieu of the Services Charges the RCDF would be providing the following services to the Unions: (i) marketing Support as per requirement. (ii) Coordination with the state/ce....

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....arketing of the products of the appellant. RCDF itself treated the receipts as "Service Charges". The payment made by the appellant was not in the nature of reimbursement of expenses incurred by RCDF. It is clearly mention in the aforesaid letter dated 04.11.1997 that RCDF will create a reserve of maximum of 10% of its receipts for incurring specific expenditure for the member societies. The exces....

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....s not deducted the tax at source from such payment, the expenditure is not allowable u/s 40(a)(ia) of the Act." "However, I agree with the contention of the ld. AR that provisions of section 40(a) (ia) are not applicable on the payments made before the end of the previous year, as held by the Hon'ble ITAT, Jaipur in the case of JVVNL (supra). A.O. is directed to verify the actual paym....