2005 (8) TMI 66

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.... by J.H. Bhatia J.-This appeal is preferred by the Revenue under section 260A of the Income-tax Act against the order of the Income-tax Appellate Tribunal. The following substantial question of law is raised in the said appeal: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal relying upon the Special Bench in the case of Shri Chartrapati Sahakari....

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....229 ITR 577 and the judgment of this court dated June 28, 2005, in a group of income-tax appeals including Income-tax Appeal No. 9 of 1999, CIT v. Malegaon Sahakari Sakhar Karkhana Ltd. [2005] 279 ITR 19. In Chatrapati Sahakari Shakar Karkhana Ltd. [2004] 270 ITR 1, the Supreme Court clearly held that in view of the provisions of the Co-operative Societies Act and Rules in Maharashtra, non-refunda....

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....s and are not liable to be added in the income of the society. The Supreme Court specifically held that the amounts realised on account of Cane Development Fund reach the assessee-sugar factory as its income and are utilised by it for the benefit of itself and its members, and therefore, deductions made for Cane Development Fund should be treated as the income of the assessee. The Supreme Court....