2006 (9) TMI 155

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ses?" The reference relates to the assessment years 1976-77 and 1977-78. Briefly stated the facts giving rise of the present reference are as follows: During the assessment year 1976-77, the assessee had claimed deduction for Rs. 6,72,294 being the liability for payment of market fee. According to the assessee, market fee is payable to the Government of Bihar on purchase of sugarcane and sale of sugar and molasses under the Bihar Agricultural Produce Markets Act, 1960. The Assessing Officer had observed that the assessee has not proved its claim. He had also noted that the liability for payment of the amount has not been admitted by the assessee. In the circumstances, he had held that this liability is neither contingent nor rea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....resentative had also pointed out that the assessee had purchased sugar cane for Rs. 2,38,95,498 and on account of such purchases, the market fee at 1 per cent. comes to Rs. 2,38,954 and the claim to the extent is allowable. It was also pointed out that the liability for the year in question stands quantified because the Agricultural Produce Market Committee, Bettiah, had issued demand notice, which was brought on record. The Tribunal after taking into account its order for the assessment year 1980-81 had accepted the assessee's claim only to the extent of Rs. 2,38,581.26 by recording the following findings: "We have given due consideration to the rival submission. In the appeal relating to the assessment year 1980-81, after considering t....