JUDGEMENT
S. Grover, Judicial Member -
(1.)THIS second appeal is directed against the order dated 18th May, 1983 passed by the Commissioner of Income-tax (Appeals) Delhi-IV, New Delhi, in respect of-assessment year 1979-80. Though there are as many as 9 grounds of appeal taken, these can be categorised under three heads as follows:
(a) Whether the provisions of Sections 11, 12 and 2(24)(iia) of the Income-tax Act, 1961 affected the assessee's claim of exemption from taxation;
(b) Whether the sums totalling Rs. 14,05,340 received from National Agricultural Co-operative Marketing Federation of India (hereinafter shortly referred to as NAFED) could be said to bear the character of income and thus taxable or the amounts could be said to be towards the corpus or capital received and thus beyond the ambit of taxation; and
(c) Whether the levy of interest under Section 217 of the Act as also initiation of proceedings under Section 271(1)(c) and Section 273 of the Act were proper or the directions in the assessment in that regard were void ab initio and should be expunged.
(2.)To understand the dispute which travels from the inception of the appellant-assessee and for which the first assessment year was 1978-79, the history of the case must necessarily be brought in close focus which is as follows:
By a Resolution dated 12th of May, 1976 the Price Fixation Committee of the Government of India meeting at Bombay passed a Resolution that one Institution be created for carrying out research and development activities on various export-oriented agricultural produce especially onions to begin with, with a view to improve yield and quality of the produce. For the purpose it was further resolved that a development fund may be collected from the exporters out of the exports of onions. To start with it was decided that contribution @ Rs. 300 per Metric Ton towards the development fund shall be collected. Such rate of collection was, however, to be re-decided in the Price Fixation Committee meetings from time to time.
On the same day i.e. on 12th May, 1976 itself the Fifth Meeting of the Price Fixation Advisory Committee for fixing the price for the export of onions to all permissible destinations, was held at its Bombay office and the following members were present:
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The above names have been noticed with a purpose because of the argument raised by the learned Senior Departmental Representative, Shri Amitabh Kumar appearing for the Revenue, was that the composition of the Price Fixation Committee showed that most of its members were exporters themselves and, therefore, the collections to be made could not be termed as anything, but voluntary though the expression used more than once in various communications has been "collections to be made" or "levy" directed.
(3.)ON 12th May, 1976 itself NAFED addressed a communication to all its Associated Shippers informing them that the price for export of Indian onions had been fixed with immediate effect as follows:-
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The Shippers were further informed that the above-mentioned prices included Rs. 300 per M.T. to be contributed towards Development Fund by the Exporters to be collected by NAFED and that the said levy came into force with immediate effect for shipment of fresh orders of onions and was payable immediately after realisation of payments from banks on the opening of Letters of Credits. The shippers were further required to communicate the abovesaid price to their Exporters clientele, who were to confirm export orders directly with NAFED before opening Letters of Credits. It was further stated in the communication that shipments will be allowed only after receipt of mail confirmation of fresh L/Cs.
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