The ACIT, 1 (1), Bhopal V. M/s. M P State Agriculture Marketing Board, Bhopal

ITA 398/IND/2008

• Counselvise Citation: 39822714 RSA 2008
• Duration Of Justice: 4 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-08-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 28-08-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DARSHAN SINGH
• Keywords: Depreciation; Revenue expenditure
• Section: 143(3); 12AA; 10B; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AAAJM0765E I.T.A.NO. 398 / IND /20 0 8 A.Y. : 2005 - 06 ACIT, M.P.STATE AGRICULTURE MARKETING BOARD, 1(1), VS 26, ARERA HIL LS, BHOPAL. BHOPAL. APPELLANT RESPONDENT APPELLANT BY : SHRI DARSHAN SINGH, CIT DR RESPONDENT BY : SHRI SUMIT NEMA AND SHRI AMIT JAIN, ADVOCATES DATE OF HEARING : 2 9 . 1 0 .20 12 DATE OF PRONOUNCEMENT : 07.11. 201 2 O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 06.06.2008 FOR THE ASSESSMENT YEAR 2005-06, IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INC OME-TAX ACT, 1961. 2. FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE REVENUE :- -: 2: - 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) HAS ERRED IN :- 1. HOLDING THAT THE TOTAL RECEIPT OF RS. 29,20,84,683/ - FOR EXEMPTION U/S 11 OF THE INCOME-TAX ACT, 1961, WHICH IS NOT ALLOWABLE FOR THE REASONS MENTIONED IN THE ASSESSMENT ORDER. 2. DELETING THE ADDITION OF RS. 28,79,76,76,326/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF VARIOUS FUND S WHICH WAS TREATED AS INCOME OF THE ASSESSEE. 3. DELETING THE ADDITION OF RS. 68,73,082/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DEPRECIATION CLAIMED ON ASSETS AS REVENUE EXPENDITURE. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. FACTS OF THE CASE ARE THAT THE ASSESSEE IS A MANDI BOARD AND IS AN IMPLEMENTING AGENCY UNDER MP KRISHI UPAJ ADHINIYAM ON BEHALF OF GOVERNMENT OF MADHYA PRADESH AND NOT ENGAGED IN ANY BUSINESS ACTIVITY. THE OBJECTS AND ACTIVITIES OF THE ASSESSEE ARE CHARITABLE IN NATURE AND IT HAS BEEN ALLOWED REGISTRATION U/S 12AA HENCE DEDUCTION U/S 11 WAS CLAIMED IN RESPECT OF ITS INCOME. -: 3: - 3 THE COUNSEL APPEARED ON BEHALF OF THE APPELLANT SUBMITTED THAT THE APPELLANT IS A LEGAL ENTITY CONSTITUTED UNDER MP KRISHI UPAJ MANDI ADHINIYAM 1972 TO REGULATE THE MARKET COMMITTEES IN THE STATE OF MP UNDER MP KRISHI UPAJ MANDI ADHINIYAM. THERE ARE TWO ENTITIES UNDER THAT ACT, ONE IS KRISHI UPAJ MAN DI SAMITIES AND ANOTHER IS MP STATE AGRICULTURE MARKETING BOARD (THE APPELLANT). THE MAIN OBJECT OF FORMING THE KRISHI UPAJ MANDI SAMITI AND THE MANDI BOARD IS TO PROVIDE PROPER INFRASTRUCTURE FOR MARKE TING OF AGRICULTURAL PRODUCE TO THE FARMERS AND TO PROTE CT THEIR INTEREST SO THAT THE FARMERS CAN GET PROPER V ALUES OF THEIR PRODUCE. FOR THAT PURPOSE THE MARKET COMMITTEES HAVE BEEN ESTABLISHED AND FOR THE FUNDIN G OF THEIR EXPENDITURE ON THE OBJECT THEY HAVE BEEN AUTHORIZED UNDER THE ACT TO COLLECT MARKETING FEES ON PURCHASE OF AGRICULTURE PRODUCE. AS PER NOTIFICATIO N NO.D-15-5/2000/14-3 DATED 30-10-2000 ALSO REFERRED BY THE ASSESSING OFFICER IN HIS ORDER IN PARA NO. 4 (I )(A) AT PAGE 20 THE MANDI COMMITTEES ARE REQUIRED TO -: 4: - 4 CONTRIBUTE 50% OF THEIR MANDI FEES IN MP STATE MARKETING DEVELOPMENT FUND TO THE BOARD. IT HAS BEE N FURTHER CLARIFIED IN THE NOTIFICATION THAT THE BOAR D SHALL PUT 85% OF THIS AMOUNT IN KISAN SADAK NIDHI AND 15% FOR AGRICULTURE RESEARCH AND INFRASTRUCTURE DEVELOPMENT FUND. FURTHER CERTAIN PERCENTAGES OF TH E MANDI FEES AND OTHER RECEIPTS DEPENDING ON THE RANG E OF INCOME ARE ALSO TO BE CONTRIBUTED BY MANDI COMMITTEES IN MP STATE MARKETING DEVELOPMENT FUND. THUS THE BOARD RECEIVES FUNDS FROM VARIOUS MANDI COMMITTEES IN TWO FORMS. ONE IS FIXED AMOUNT OF MANDI FEES FOR UTILIZATION OF 85 % AMOUNT IN KISAN SADAK NIDHI AND 15% IN AGRICULTURE RESEARCH AND INFRASTRUCTURE DEVELOPMENT AND ANOTHER AMOUNT FROM THE MANDI COMMITTEE AS PROVIDED IN SCHEDULE II OF T HE NOTIFICATION NO. NO.D-15-5-2000-XIV-3 DATED 30.10.2000. THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 1961. ACCORDINGLY, IT CLAIMED ITS ENTIRE INCOME AS EXEMPT FROM TAX U/S 11. DURING THE COURSE OF ASSESSMENT, T HE -: 5: - 5 AO OBSERVED THAT THE ASSESSEE IS IN RECEIPT OF RS. 28,79,76,326/- DURING THE YEAR ON ACCOUNTOF INTERES T ON FIXED DEPOSITS AND SAVING BANK ACCOUNTS AND AMOUNT RECEIVED FROM MANDIES FOR VARIOUS NIDHIS ETC . WHICH HAS NOT BEEN SHOWN IN THE STATEMENT OF RECEIP TS ANNEXED WITH THE FINANCIAL STATEMENTS AND THUS NOT OFFERED FOR TAXATION. IT IS ALSO IMPORTANT TO NOTE THAT THE ASSESSEE HAS RECEIVED AMOUNT FROM VARIOUS KRISH I UPAJ MANDIES FOR KRISHI ANUSHANDHAN NIDHI, KISAN SADAK NIDHI AND MANDI PENSION NIDHI, AS PER DETAILS GIVEN ABOVE. WHILE TRANSFERRING ABOVE AMOUNT TO THE MANDI BOARD (ASSESSEE), RESPECTIVE KRISHI UPAJ MANDIES TREATED THE SAME AS EXPENSES BY DEBITING TH E REQUISITE ACCOUNT. HENCE, THESE RECEIPTS FROM KRISH I UPAJ MANDI IS INVARIABLY IN THE NATURE OF INCOME FO R THE BOARD. AS ALREADY MENTIONED NO PROFIT AND LOSS ACCOUNT OR INCOME AND EXPENDITURE ACCOUNT HAS BEEN PREPARED BY THE ASSESSEE. IN ABSENCE OF THIS, ABOVE AMOUNT OF RS. 28,79,76,326/- WAS CONSIDERED BY THE ASSESSING OFFICER AS INCOME OF THE ASSESSEE AND -: 6: - 6 THEREFORE ADDED TO THE TOTAL INCOME FOR THE ASSESSM ENT YEAR 2005-06. 4. IN VIEW OF THE ABOVE OBSERVATION TOTAL INCOME OF THE ASSESSEE WAS COMPUTED AS UNDER :- TOTAL RECEIPTS SHOWN AS PER STATEMENT OF RECEIPT RS. 29,20,84,683/ - ADD: - 1.INCOME ON ACCOUNT OF VARIOUS NIDHI AS PER DETAILS GIVEN IN PARA 9.2 RS. 28,79,76,326/ - 2. EXPENSES DISALLOWED AS PER DETAILS IN PARA 8.1 I.E. DEPRECIATION 68,73,082/ - TOTAL RECEIPTS RS. 58,69,34,091/ - 15% SET APART RS. 8,80,40,113/ - BALANCE OF TOTAL RECEIPTS RS. 49,88,93,978/ - LESS: REVENUE EXPE NSES AS PER STATEMENT OF EXPENSES MINUS DEPRECIATION DISALLOWED ( 277479094 68873082) RS. 27,06,06,012/ - BALANCE RS . 22,82,87,966/ - LESS: - CAPITAL EXPENSES AS PER FORM 10B RS. 1,15,38,312/ - -: 7: - 7 TOTAL INCOME RS. 21,67,49,654/ - ROUNDED OFF RS. 21,67,4 9,650/ - 5. BY THE IMPUGNED ORDER, THE LD. CIT(A) DELETED THE ADDITION MADE ON ACCOUNT OF AMOUNT RECEIVED ON ACCO UNT OF FOLLOWING DEAL :- NAME OF FUND (NIDHI) AMOUNT (RS.) MANDI NIRVANCHAN NIDHI 2,60,725/ - KRISHI ANUSANDHAN NIDHI 14,35,89,980/ - KISAN SA DAK NIDHI 9,79,06,855/ - KIS AN RAHAT KOSH 54,645/ - GPF NIDHI 34,52,479/ - BOARD PENSION NIDHI - 21,93,946/ - MANDI PENSION NIDHI 4,49,05,588/ - TOTAL 28,79,76,326/ - -: 8: - 8 6. THE PRECISE OBSERVATION OF THE LD. CIT(A) IN THIS REGARD WAS AS UNDER :- I HAVE CONSIDERED THE VARIOUS SUBMISSIONS MADE BY THE APPELLANT, THE PROVISIONS OF MP KRISHI UPAJ MANDI (RAJYA VIPNAN VIKAS NIDHI) NIYAM 2000, NOTIFICATIONS ISSUED BY THE AGRICULTURE DEPARTMENT, GOVERNMENT OF MADHYA PRADESH AND THE ASSESSMENT ORDER. THE ASSESSING OFFICER HAS MADE AN ADDITION OF RS 28,79,76,326/ - TREATING THE UNSPENT BALANCE IN ABOVE NIDHIS AS INCOME OF THE APPELLANT. HE HAS FURTHER MENTIONED THAT WHILE TRANSFERRING THE ABOVE. AMOUNT TO THE MANDI BOARD RESPECTIVE KRISHI UPAJ MANDIS TREATED THE SAME AS EXPENSES BY DEBITING THE REQUISITE ACCOUNT HENCE THESE RECEIPTS FROM KRISHI UPAJ MANDIS IS INVARIABLY IN THE NATURE OF THE INCOME OF THE BOARD. BUT PERUSAL OF KRISHI UPAJ MANDI RULE AND NOTIFICATION MAKE IT CLEAR THAT OUT OF THE CONTRIBUTION IN VIPNAN -: 9: - 9 VIKAS NIDHI BY VARIOUS MANDI COMMITTEES 85% AMOUNT IS TO BE CONTRIBUTED IN KISAN SADAK NIDHI AND 15% FOR KRISHI ANUSANDHAN AND ADHOSANRAKSHAK NIDHI. HENCE THESE AMOUNTS DO NOT FORM PART OF INCOME OF THE APPELLANT. THE ASSESSING OFFICER HAS HIMSELF ALLOWED DEDUCTION OF AMOUNT PAID BY THE APPELLANT DURING THE YEAR FROM THESE FUNDS AND ONLY THE BALANCE AMOUNT HAS BEEN TREATED AS INCOME. AS THE APPELLANT IS MAINTAINING ITS ACCOUNTS ON MERCANTILE BASIS HENCE DEDUCTION SHOULD HAVE BEEN ALLOWED OF THE FULL AMOUNT. THERE IS FORCE IN SUBMISSION OF THE APPELLANT AND AS PER THE PROVISIONS OF THE MP KRISHI UPAJ MANDI (RAJYA VIPNAN VIKAS NIDHI) NIYAM 2000 AND THE NOTIFICATIONS OF GOVT. OF MP THESE NIDHIS ARE NOT THE INCOME OF THE APPELLANT. FURTHER THE AMOUNT OUTSTANDING IN GPF NIDHI -: 10: - 10 RS 3452479/- IS THE AMOUNT DEDUCTED FROM EMPLOYEES AND KEPT AS DEPOSIT IN THE ACCOUNT TO BE GIVEN TO THEM AT THE TIME OF THEIR RETIREMENT OR LEAVING THE EMPLOYMENT, HENCE THIS IS NOT THE INCOME OF THE APPELLANT. AS THE BOARD IS FOLLOWING SERVICE RULES OF GOVERNMENT OF MADHYA PRADESH, HENCE AMOUNT DEDUCTED ON ACCOUNT OF GENERAL PROVIDENT FUND FROM THE SALARIES OF EMPLOYEES DOES NOT FORM PART OF APPELLANT'S INCOME BUT IT IS A LIABILITY PAYABLE AT THE SPECIFIED TIME. FURTHER NO AMOUNT HAS BEEN CONTRIBUTED BY THE APPELLANT IN THIS REGARD NOR ANY DEDUCTION HAS BEEN ALLOWED ON THIS ACCOUNT HENCE THIS NIDHI ALSO DOES NOT FORM PART OF THE INCOME OF THE APPELLANT IN ANY WAY. THIS AMOUNT REPRESENTS ONLY THE DEDUCTION MADE FROM THE SALARY OF THE EMPLOYEE AND INTEREST EARNED THEREON WHICH IS REQUIRED TO BE PAID TO THE EMPLOYEES LATER -: 11: - 11 ON. SIMILARLY FOR MANDI PENSION NIDHI RS 44905588/- FOR PAYMENT OF PENSION TO MANDI EMPLOYEES THE MANDI COMMITTEES HAVE SENT FUNDS TO THE BOARD TO KEEP IN RESERVE THE AMOUNT FOR THE PAYMENT OF PENSION TO THE MANDI COMMITTEES' EMPLOYEES. THUS THIS AMOUNT IS NOT THE APPELLANT'S FUND OR INCOME NOR ANY DEDUCTION OF THIS AMOUNT HAS BEEN ALLOWED IN CALCULATING INCOME OF THE APPELLANT HENCE CANNOT BE CONSIDERED AS INCOME OF THE APPELLANT. THE APPELLANT IS ONLY THE CUSTODIAN OF THIS AMOUNT. CONSIDERING ALL THE FACTS AND THE SUBMISSIONS, I HOLD THAT BALANCES IN VARIOUS NIDHIS ARE NOT THE INCOME OF THE APPELLANT AND ACCORDINGLY THE ADDITION OF RS 28,79,76,326/- MADE BY THE ASSESSING OFFICER IS HEREBY DELETED AND THIS GROUND STANDS ALLOWED. -: 12: - 12 7. THE LD. CIT(A) ALSO HELD THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S11, ACCORDINGLY, TOTAL RE CEIPTS OF RS.29,20,84,683/- WAS ELIGIBLE FOR EXEMPTION U/S 11 OF THE INCOME-TAX ACT, 1961. 8. AGAINST THE ABOVE ORDER, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 9. IT WAS CONTENDED BY THE LD. CIT DR THAT THE ASSESSEE HAS NOT INCORPORATED INCOME ON ACCOUNT OF VARIOUS NIDHIS AMOUNTING TO RS. 28,79,76,326/- IN IT S TOTAL INCOME. AS PER LD. CIT DR, THE DIRECTION OF TH E M.P. GOVERNMENT WITH REGARD TO PROVIDING 85% AMOUNT TO KISAN SADAK NIDHI FUND AND 15 % TO, KRISHI ANUSANDHAN KENDRA, CANNOT OVERRIDE THE INCOME TAX PROVISIONS. ACCORDINGLY, CONTRIBUTION GIVEN BY THE ASSESSEE TO VARIOUS NIDHIS WERE NOT ALLOWABLE UNDER THE INCOME-TAX ACT, 1961, WHILE COMPUTING UTILIZATI ON OF INCOME TO THE EXTENT OF 85% OF THE RECEIPTS. 10. ON THE OTHER HAND, THE CONTENTION OF THE LD. AUTHORIZED REPRESENTATIVE WAS THAT THE AMOUNT WAS RECEIVED FROM GOVERNMENT FOR SPECIFIC PURPOSES, WHI CH -: 13: - 13 WILL NOT FORM PART OF CORPUS OF THE TRUST OR INSTIT UTION AS PER PROVISIONS OF SECTION 11(1)(D) OF THE INCOME -TAX ACT, 1961. HE FURTHER DREW OUR ATTENTION TO THE ACT UAL INCOME RECEIVED BY THE ASSESSEE TO THE EXTENT OF RS.29.20 CRORES AND WHICH WAS EXPANDED BY THE ASSESSEE MORE THAN 85% OF ITS RECEIPTS AS PER THE COMPUTATION MADE BY THE ASSESSING OFFICER HIMSELF. ACCORDINGLY, HE PLEADED THAT SINCE THE ASSESSEE HAS UTILIZED MORE THAN 85% OF ITS RECEIPTS/INCOME, THE RE IS NO REASON TO TREAT THE GRANT RECEIVED FROM GOVERNME NT, WHICH WAS TO BE UTILIZED ONLY AS PER THE DIRECTION OF THE GOVERNMENT, AS THE INCOME OF THE ASSESSEE. 11. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW AND FOUND FROM RECORD THAT IN THE COURSE OF SCRUTINY ASSESSMENT, THE ASSESSING OFFICER HAS TREA TED THE AMOUNT RECEIVED BY ASSESSEE BOARD FROM VARIOUS MARKET COMMITTEE ON ACCOUNT OF MADHYA PRADESH STATE MARKETING DEVELOPMENT FUND AS INCOME OF THE ASSESSEE. THE ASSESSING OFFICER ALSO OBSERVED THAT -: 14: - 14 WHILE TRANSFERRING THE AMOUNT TO ASSESSEE BOARD, TH E RESPECTIVE KRISHI UPAJ MANDI COMMITTEE TREATED THE SAME AS EXPENSES. HOWEVER, WHILE TREATING THE AMOUN T RECEIVED AS INCOME, THE ASSESSING OFFICER HAS NOT CONSIDERED KRISHI UPAJ MANDI RULES AND NOTIFICATION WHICH MAKE IT CLEAR THAT OUT OF CONTRIBUTION RECEIV ED FROM VARIOUS MANDI COMMITTEE, 85 % AMOUNT WAS TO BE CONTRIBUTED BY ASSESSEE BOARD TO KISAN SADAK NIDHI AND 15 % FOR KRISHI ANUSANDHAN AND ADHOSANRAKSHAK NIDHI. THUS, WHATEVER AMOUNT WAS RECEIVED FROM VARIOUS MANDI COMMITTEE, THE SAME WAS REQUIRED TO BE ALLOCATED TO ROAD FUND AND INFRASTRUCTURE DEVELOPMENT FUND. NEITHER THE ASSESSEE WAS HAVING CONTROL OVER RECEIPT OF THIS AMOUNT NOR ON ITS ALLOCATION. THE ENTIRE AMOUNT WAS TO BE ALLOCATED AS PER GOVERNMENT OF M.P. NOTIFICATION DATED 30 TH OCTOBER, 2000. AS PER M.P. KRISHI UPAJ MANDI NIYAMAN 2000, THESE NIDHIS ARE NOT THE INCOME OF THE ASSESSEE. SINCE THE ASSESSEE WAS ONLY CUSTO DIAN OF THESE AMOUNTS, THE BALANCE IN VARIOUS NIDHIS -: 15: - 15 ACCOUNT WAS NOT INCOME OF THE ASSESSEE VIDE NOTIFICATION NO. D-15-5/2000/14-3 DATED 30 TH OCTOBER, 2000, WHICH READS AS UNDER :- THE M.P. STATE AGRICULTURE MARKETING DEVELOPMENT BOARD SHALL ALLOCATE 85 PERCENT OF THE RECEIPTS OBTAINED UNDER SCHEDULE ONE TO THE AGRICULTURIST ROAD FUND AND REMAINING 15 PERCENT TO THE AGRICULTURE RESEARCH AND INFRASTRUCTURE DEVELOPMENT FUND IN SUCH MANNER AS MAY BE PRESCRIBED IN NOTIFICATIONS ISSUED BY THE STATE GOVERNMENT FROM TIME TO TIME. 12. FURTHER, M. P. GAZETTE NOTIFICATION DATED 13 TH JULY, 2001, READS AS UNDER :- CHAPTER-II MADHYA PRADESH STATE MARKETING DEVELOPMENT FUND 3. MADHYA PRADESH STATE MARKETING DEVELOPMENT FUND- (1) EVERY MARKET COMMITTEE SHALL PAY BOARD -: 16: - 16 UP TO THE 10 TH DAY OF EVERY MONTH OF SUCH PERCENTAGE OF GROSS RECEIPTS COMPOSING OF LICENSE FEES AND MARKET FEES AS THE STATE GOVERNMENT MAY BY NOTIFICATION DECLARE FROM TIME TO TIME UNDER SUB SECTION (1) OF SECTION 43 OF THE ADHINIYAM. 13. IT IS CLEAR FROM THE ABOVE THAT M.P. STATE AGRICUL TURAL MARKETING DEVELOPMENT BOARD SHALL ALLOCATE 85% OF T HE RECEIPTS SO OBTAINED TO THE AGRICULTURIST ROAD FUN D AND 15 PERCENT TO AGRICULTURE RESEARCH AND INFRASTRUCTURE DEVELOPMENT FUND . 14. WE FOUND THAT EVEN THE INTEREST ACCRUED ON THE DEPOSIT OF THESE FUNDS IN THE BANK ACCOUNT, WAS ALS O REQUIRED TO BE ALLOCATED FOR THE SPECIFIED PURPOSE AS PER NOTIFICATION DATED 30 TH OCTOBER, 2000. THUS, WHEN THE ASSESSEE HAD NO CONTROL OVER RECEIPT NOR ON ITS UTILIZATION, THERE IS NO JUSTIFICATION TO TREAT SUC H RECEIPTS AS ASSESSEES INCOME. THUS, WE FOUND THAT THESE AMOUNTS DO NOT FORM PART INCOME OF THE ASSESSEE. -: 17: - 17 15. IN RESPECT OF ITS OWN INCOME, THE ASSESSEE HAS ACTU ALLY SPENT MORE THAN 85% OF THE SALE, THEREFORE, BENEFIT OF SECTION 11 & 12 CANNOT BE DECLINED ON THE PLEA THAT THE ASS ESSEE HAS NOT USED 85% OF ITS RECEIPTS. AS PER THE CALCULATIO N MADE BY THE ASSESSING OFFICER VIS--VIS FURNISHED BY THE AS SESSEE IN THE PAPER BOOK INDICATE TOTAL RECEIPT OF RS. 29.20 CROR ES, 15 % OF WHICH WORKS OUT TO BE RS. 4.38 CRORES AND BALANCE W ORKS OUT TO BE RS. 24.82 CRORES. THE ASSESSEE HAS INCURRED R EVENUE EXPENSES OF RS. 27.06 CRORES AND CAPITAL EXPENSES A S PER FORM 10-B AT RS. 1.15 CRORES. THUS, THE REVENUE EXPENSES AND THE CAPITAL EXPENSES SO INCURRED BY THE ASSESSEE WORKS OUT TO BE MORE THAN RS. 24.82 CRORES, WHICH IS THE BALANCE OF TOTAL RECEIPTS. 16. THE AMOUNT RECEIVED FROM MANDI COMMITTEE, AS PER SCHEDULE ONE WAS ALLOCATED TO AGRICULTURE ROAD FUND AND AGRICULTURE RESEARCH AND INFRASTRUCTURE DEVELOPMENT FUND, THUS, DID NOT FORM PART OF ASSESSEES INCOME BECAUS E OF OVERRIDING TITLE. SINCE THESE RECEIPTS WERE NOT ASS ESSEES INCOME, THE ASSESSING OFFICER WAS NOT JUSTIFIED IN TREATING THE BALANCE AMOUNT IN THESE FUNDS AS ASSESSEES INCOME ON THE -: 18: - 18 PLEA OF NON-UTILIZATION OF 85% OF RECEIPTS. THE DET AILED FINDING GIVEN BY THE LD.CIT(A) FROM PAGES 10 TO 12 HAS NOT BEEN CONTROVERTED BY THE LD. CIT DR BY BRINING ANY POSIT IVE MATERIAL ON RECORD. ACCORDINGLY, WE DO NOT FIND ANY INFIRMIT Y IN THE ORDER OF CIT(A). 17. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 7 TH NOVEMBER, 2012. SD/ - SD / - (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 7 TH NOVEMBER, 2012. CPU* 1.11