Cit vs Agricultural Produce Market
2007 Latest Caselaw 433 Del

ORDER

1. The revenue is aggrieved by an order dated 30-11-2005 passed by the Income Tax Appellate Tribunal, Delhi Bench T" in ITA No. 5660 (Delhi) of 2004 relevant for the assessment year 2003-04.

2. The assessed had claimed exemption of contribution made by it to the Delhi Agricultural Marketing Board. According to the assessed, the contribution was a statutory contribution under Section 84 of the Delhi Agricultural Produce Marketing (Regulation) Act, 1998. The exemption was disallowed by the assessing officer on the ground that the assessed had failed to file its audited accounts and that in the accounts that were filed by the assessed, there were some discrepancies.

3. The view taken by the assessing officer was accepted by the Commissioner (Appeals) who further enhanced the income of the assessed even though audited accounts were filed before him.G *In favor of assessed.

4. In an appeal filed by the assessed before the Tribunal, it was noted that similar contributions made by the assessed since assessment years 1984-85 to 2002-03 were allowed by the assessing officer. It was contended that the Commissioner (Appeals) did not correctly appreciate the audited accounts.

5. The Tribunal noted the fact that the contribution made by the assessed is a statutory contribution and that audited accounts have since been filed. The Tribunal was of the view that if there was a difficulty in determining the income of the assessed because of differences in figures, the appropriate course of action for the Commissioner to have followed was to have given an opportunity to the assessed to reconcile the differences particularly because of the method of accounting followed by the assessed, which was a cash system of accounting. It was also held by the Tribunal that delay in preparation of the audited accounts was beyond the control of the assessed. On this basis, the Tribunal remanded the matter to the file of the Commissioner (Appeals) for giving an opportunity to the assessed to reconcile the differences in the accounts and thereafter to decide the quantum of disallowance.

6. We are of the opinion that the view expressed by the Tribunal does not call for any interference. All that has been done is to remand the matter back to the Commissioner (Appeals) for looking into the issue afresh and also to look into the audited accounts which have since been filed by the assessed and take into consideration the fact that for almost 20 years, the contributions made by the assessed have been exempted by the revenue.

7. In view of this, in our opinion, no substantial question of law arises for consideration.

8. The appeal is dismissed.