Law:

Section:

Section 28(i) of the Income-tax Act, 1961 - Business income - Assessable as - Whether Tribunal was right in deleting additions made by Assessing Officer on account of non-refundable deposits and interest paid/payable on non-refundable deposits by holding that various funds/deposits collected by assessee-society out of sugarcane purchase price payable to cane growers were not trading receipts of assessee - Held, no Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Whether Tribunal was justified in deleting disallowance of payment of excess price of sugarcane for assessment year under consideration - Held, yes - Whether Tribunal was also right in deleting disallowance of part of advertisement expenses on account of Subhechcha Greetings holding that expenditure was necessary to maintain cordial relations with members - Held, yes CASES REFERRED TO CIT v. Chhatrapati Sahakari Sakhar Karkhana Ltd. [2000] 245 ITR 498/ 111 Taxman 176 (Bom.) [Para 6] and CIT v. Shree Panchaganga Sahakari Sakhar Karkhana Ltd. [2001] 250 ITR 772 / 118 Taxman 122 (Bom.) [Para 6]. R.V. Desai, P.S. Jaitly, B.M. Chatterjee and H.D. Rathod for the Appellant. P.Y. Vaidya and S.N. Inamdar for the Respondent. JUDGMENT 1. Heard parties. 2. Admit. 3. Shri Vaidya for the respondent waives service. 4. By consent of parties, appeal be taken up for final hearing. 5. The three questions sought to be raised in this appeal have already been covered and answered by two different judgments of this Court. The substantial questions of law raised are as under : "1. Whether, on the facts and in the circumstances of the case, and in law, the Tribunal relying upon the decision of the Special Bench in the case of Shri Chatrapati Sahakari Sakhar Karkhana Ltd. v. Dy. CIT [1992] 198 ITR (A.T.) 78 (Pune), was right in deleting the additions made by the Assessing Officer on account of non-refundable deposits, interest paid/payable on non-refundable deposits by holding that various funds/deposits collected by the assessee-society out of sugarcane purchase price payable to the cane growers are not the trading receipts of the assessee ? 2. Whether, on the facts and in the circumstances…

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