ACIT, New Delhi V. M/s Fish Poultry and Egg Marketing Committee, Delhi

ITA 2067/DEL/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0959 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 28-07-2009
• Assessment Year: 2006-2007
• Appeal Filed On: 15-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAWAN CHAUDHARY
• Assessee Lawyers: PRATIMA KAUSHIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPPA: VICE PRESIDENT AN D SHRI A.D. JAIN : JUDICIAL MEMBER ITA NO. 2067/DEL/09 ASSTT. YR: 2006-07 ACIT CIRCLE 36(1), VS. M/S FISH POULTRY & EGG MA RKETING NEW DELHI. COMMITTEE, FISH MARKET COMPLEX, FRUIT & VEGETABLE MARKET, GAZIPUR, DELHI-110092. PAN/GIR NO. AAATF0883 G ( APPLICANT ) ( RESPONDENT ) ASSESSEE BY : MS. PRATIMA KAUSHIK SR. DR . REVENUE BY : SHRI PAWAN CHAUDHARY ADV. O R D E R PER, G.E. VEERABHADRAPPA, V.P: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS) DATED 31-12-2008 RELATING TO ASSESSMEN T YEAR 2006-07. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE IS AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD . CIT(A) ERRED IN DELETING THE ADDITION OF RS. 47,97,860/- MADE BY TH E AO BY HOLDING THAT THE PAYMENTS/ CONTRIBUTION TO DELHI AGRICULTURAL PR ODUCE MARKETING BOARD WAS A STATUTORY PAYMENT AND ALLOWABLE AS DEDUCTION. 2067/DEL/09 FISH POULTRY & ENGG. MARKETING COMMITTEE. 2 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THR OUGH THE RECORDS. THE ASSESSING OFFICER CONCLUDED THAT THE CONTRIBUTI ON TO DELHI AGRICULTURAL PRODUCE MARKETING BOARD OUT OF THE MARKET FUND WAS NOT EXPENDITURE BUT A SIMPLE DISBURSEMENT. ACCORDING TO HIM, IT WAS NOT I NCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF EARNING PROFIT. IT W AS THE CASE OF THE ASSESSEE THAT IN THE LIGHT OF THE PROVISION U/S 89(2) OF THE DELHI AGRICULTURAL PRODUCE MARKETING (REGULATION) ACT, 1998, EVERY MARKETING COMMITTEE IS REQUIRED TO PAY CONTRIBUTION TO DELHI AGRICULTURAL PRODUCE M ARKETING BOARD OUT OF ITS OWN FUND BEING CERTAIN PERCENTAGE OF ITS INCOME SO AS TO ENABLE THE BOARD TO DEFRAY THE EXPENSES ON OFFICE ESTABLISHMENT ETC. TO BE INCURRED BY THE BOARD IN THE INTEREST OF MARKETING COMMITTEES. THE QUANT UM OF SUCH CONTRIBUTION IS TO BE WORKED OUT ON THE BASIS OF PERCENTAGE OF THE FINAL INCOME OF THE MARKETING COMMITTEE. THE FACT THAT CONTRIBUTION MAD E TO THE BOARD IS A STATUTORY PAYMENT, DIRECTLY CONNECTED WITH THE BUSI NESS OF MARKETING COMMITTEE, ON IDENTICAL FACTS, HAS BEEN APPRECIATE D BY THE ITAT IN THE CASE OF APMC AZADPUR VIDE ITS ORDER DATED 20-11-2005 AND THE ORDER OF THE ITAT HAS BEEN UPHELD BY THE DELHI HIGH COURT VIDE I TS ORDER DATED 28-2- 2007 IN ITA NO. 965/2005. THE CIT(A) HAS JUST RELIE D UPON THE DECISION OF THE ITAT, WHICH IS IDENTICAL TO THE FACTS OF THE CA SE IN HAND. IN THE LIGHT OF THIS DISCUSSION AND RESPECTFULLY FOLLOWING THE ORDE R OF THE ITAT IN THIS 2067/DEL/09 FISH POULTRY & ENGG. MARKETING COMMITTEE. 3 REGARD, WE DO NOT FIND ANY REASON TO INTERFERE. THE APPEAL OF THE REVENUE IS DEVOID OF ANY MERIT AND THE SAME IS DISMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON __________. ( A.D. JAIN ) ( G.E. VEERABHADRAPPA ) JUDICIAL MEMBER VICE PRESIDENT DATED: ______-10-2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 2067/DEL/09 FISH POULTRY & ENGG. MARKETING COMMITTEE. 4