Commissioner of Income Tax vs Mula Sahakari Sakhar Karkhana Ltd.

Admit.

Respondents waive service.

Since a short point is involved, the matter is disposed of at the stage of admission. Two questions have been raised in this appeal, which are as follows :

"(a) Whether non-refundable deposits collected by the Assessee-society, out of the sugarcane purchase price payable to the cane growers ,are trading receipts of the assessee-society ?

(b) Whether interest on such non-refundable deposits, are trading receipts of the assessee-society ?"

On May 4, 2000, the Division Bench of this court (to which one of us, Kapadia J. is a party) in Income Tax Reference No. 449 of 1995 Commissioner of Income Tax Vs. Chhatrapati Sahakari Sakhar Karkhana Ltd. and Rahuri Sahakari Sakhar Karkhana Ltd., has taken the view that the non-refundable deposit (NRD) constituted trading receipts of the assessee.

In view of the above judgment, both the above questions are answered in the affirmative and in favour of the Revenue. Accordingly, the appeal is allowed with no order as to costs.