- (1.) These three Income Tax Appeals filed by the appellant-revenue u/s 260A of the Income Tax Act (for short, "IT Act") are directed against the order passed by the Income Tax Appellate Tribunal, Jaipur Bench 'A', Jaipur (for short, "ITAT") by which the ITAT, while affirming the order passed by the Commissioner of Income Tax (Appeal) (for short, "CIT(A)"), has dismissed the appeal filed by the appellant-revenue. Where Dairy Co-operative Society Development charges (DCS) stands allowed. It relates to Assessment Year 2007-08, 2008-09 & 2009-10 respectively..
(2.) Since the facts and controversy involved is identical, all these three appeals are decided by this common order.
(3.) The brief facts, as emerging on the face of record, are that the respondent-assessee is an Apex body of the cooperative society and is engaged in the business of promotion, production, procurement, processing and marketing of milk products and in addition to the sale of the milk products, it is also having other income. The respondent-assessee, during the course of its business, claimed Dairy Co-operative Society (DCS) Development Expenses at Rs. 1,22,11,408/- in the assessment year 2007-08 and other amounts in other assessment years which has been incurred for development of dairy business and such amount was paid to the various primary societies and inter-alia, was in the nature of registration of new DCS (dairy cooperative society) by contributing expenses, revival of DCS, membership contribution for registering members as women/BPL families/ SC/ ST, purchase of automatic milk collection system etc. During the course of scrutiny of the assessment proceedings, when this fact was noticed by the Assessing Officer (for short, "AO"), he came, prima-facie, to the conclusion that such claim is not allowable as the respondent-assessee has incurred expenses in respect of primary societies from whom the respondent-assessee was neither having any transaction nor any business connection/consideration and thus the said expenses were incurred on its own and without any business expediency and accordingly a show cause notice was issued as to why the said amount may not be disallowed.;