2003 (4) TMI 219

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....n the circumstances of the case and in law, the learned CIT(A) has erred in deleting the addition of Rs. 42,99,624 contrary to the facts of the case and without considering the fact that the amount deleted is not an admissible item of expenditure." 2. The learned Senior Departmental Representative invited my attention to the statement of facts annexed with the appeal which is reproduced below: ....

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.... as assessee's income. On appeal, the learned CIT(A) by his order dt. 8th Jan., 2001 deleted the addition of Rs. 42,99,624 relying on the Tribunal, Ahmedabad Bench 'C' decision dt. 10th June, 1997 in the case of Shree Chalthan Vibhag Khand Udyog Sahkari Mandli Ltd. He has also relied on the CIT(A)'s decision in the case of Khedut Sahkari Khand Udyog Mandli Ltd. for asst. yr. 1994-95. The decisi....

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....gments in the cases reported in CIT vs. Shri Chhatrapati Sahakari Sakhar Karkhana Ltd. & Ors. (2000) 163 CTR (Bom) 275 : (2000) 245 ITR 498 (Bom) and CIT vs. Shri Satpuda Tapi Parishar Sahkari Sakhar Karkhana Ltd. (2002) 174 CTR (Bom) 38 : (2002) 255 ITR 568 (Bom). 4. I have considered the submissions made by the learned representatives of the parties and have gone through the judgments cited b....

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....gh Court in the aforesaid judgment has held that the deposits towards area development fund, cane development fund, and hutment fund are not liable to tax as the principle of diversion of income by overriding title would squarely apply in relation to such funds. The Hon'ble Bombay High Court in the case of CIT vs. Shri Satpuda Tapi Parishar Sahkari Sakhar Karkhana Ltd. has held that the funds and ....