Commissioner of Income-tax Vs. M.L. Agroproducts Pvt. Ltd. - Court Judgment

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direct taxation - payment of cess - section 43b of income tax act, 1961 - whether tribunal was correct in holding that provision for payment of cess to agricultural market committee was not a tax or duty but only a fee and not disallowable under section 43b - on ground of pre-decided case court held that fee paid by assessee to agricultural market committee was allowable under section 43b. head note: income tax business disallowance under s. 43b--provision for payment of cess to agricultural marketing committee--not to be disallowed under s. 43b. held : the provision for payment of cess to the agricultural market committee, which is a local authority, was not a tax or duty, but only a fee and it was therefore, not disallowable under s. 43b. the fee paid by an assessee to the.....1. following the decision of this court in srikakollu subba rao and co. v. union of india : [1988]173itr708(ap) , the income-tax appellate tribunal declined to refer the following question, viz. : 'whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was correct in law in holding that the provision for payment of cess of rs. 2,20,904 to the agricultural market committee, which is a local authority, was not a tax or duty, but only a fee and it was therefore not disallowable under section 43b of the income-tax act, 1961 ?', 2. for the decision of this court. it was held by this court in the above decision that the fee paid by an assessee to the agricultural market committee was allowable under section 43b of the income-tax act. in view of that.....