- (1.) THIS bunch of 26 appeals relate to Assessment Years 2003-04 to 2005-07 in respect of assessment proceeding taken under Income Tax Act, 1961, the (IT Act). The assessee are different Krishi Utpadan Mandi Samitis (the Samitis) incorporated under UP Krishi Utpadan Mandi Samiti Adhiniyam, 1964 (the Mandi Act). The main question involved in these appeals is, 'Whether the amounts paid by the Samitees to the State Agriculture Produce Markets Board (the Board) under statutory obligation is application of its receipts entitling exemption under section/ allowance from the income.
(2.) IN all these cases, the Samitis in their returns claimed exemption/ allowance for the amount sent by them to the Board under the Mandi Act. Among others, the Assessing Officer disallowed the amount as according to him, it was not utilisation of the amount and the Samitis were not entitled to exemption under the IT Act. The Samiti filed appeals. The Commissioner (Appeals) held that the amount sent by them to the Board is proper utilisation of the money enabling exemption for the same. The addition was deleted.
(3.) THE Income Tax Department (the Department) filed appeals before the Income Tax Appellate Tribunal (the Tribunal). THEse were dismissed by different orders. Hence, the present appeals. We have heard Sri AN Mahajan, and Sri Shambhu Chopra, for the Department; and Sri SK Garg, and Sri Ashish Bansal, counsel for the Samitees. THE DECISION;