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

....-tax Act, 1961, (hereinafter referred to as "the Act"), for the opinion of this court: "Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal is correct in law in holding that the assessee is not entitled to deduction for liability for market fee on the sale of sugar and molasses?" The reference relates to the assessment years 1976-77 and 1977-78. Briefly stated....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessee carried the matter in appeal before the Tribunal. During the hearing of the appeal before the Tribunal, the learned Authorised Representative for the assessee had submitted that similar issue had arisen in the appeal relating to the assessment year 1980-81. It was pointed out that vide order passed in I. T. A. No. 586 (Alld) of 1984, relating to the assessment year 1980-81 the Tribunal had....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he market fee in respect of sugar and molasses sold by the assessee is not allowable, but the assessee wants to keep the matter alive. The assessee's representative 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....under consideration on account of the sugarcane purchased by the assessee in the market area. We, therefore, accept the assessee's claim to that extent and direct the Assessing Officer to allow the liability for payment of market fee to the extent of Rs. 2,38,581.26." Thus the deduction claimed for liability for market fee on the sale of sugar and molasses was not accepted by the Tribunal as well....