(M.R. Shah and C.T. Ravikumar, JJ.)
Commissioner of Income Tax (Central) _________________ Appellant;
v.
Kolhapur Zilla Sahkari Dudh Utpadak Sangh Ltd. _______ Respondent.
Civil Appeal No. 2008 of 2011, decided on April 26, 2023
The Order of the court was delivered by
Order
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 04.04.2009 passed by the High Court of Judicature at Bombay passed in Income Tax Appeal No. 290 of 2006, by which the High Court has dismissed the said Appeal preferred by the Revenue and has confirmed the order passed by the ITAT deleting the addition made by the Assessing Officer, the Revenue has preferred the present Appeal.
2. The Assessing Officer made the addition of Rs. 1,55,81,519/-treating the same as appropriation of profit as the same was paid at the end of the previous year. The ITAT, on facts, found that the amount paid was not out of the profits but it was an amount paid to the respective milk suppliers for the quantity of milk supplied and in terms of the quality supplied and, therefore, no addition could have been made treating it as appropriation of profit. The order passed by the ITAT has been affirmed by the High Court by the impugned judgment and order.
3. Having heard Shri Arijit Prasad, learned Senior Advocate, appearing on behalf of the Revenue and having gone through the finding recorded by the ITAT as well as the High Court and that the amount was paid, may be, at the end of the previous year only to the milk suppliers, which was for the quantity of milk supplied and in terms of the quality supplied and the amount was not paid to all the shareholders and not paid out of the profits ascertained at the Annual General Meeting, both the ITAT as well as the High Court have rightly deleted the addition made by the Assessing Officer.
4. In the facts and circumstances of the case, the amount paid to the milk suppliers and also to non-members cannot be said to be appropriation of profit. Therefore, no error has been committed by the High Court. We are in complete agreement with the view taken by the High Court taking into consideration the finding recorded by the ITAT as well as the High Court and the observations made by the High Court in para 14 of the impugned judgment and order.
5. In view of the above and for the reasons stated above, the present Appeal deserves to be dismissed and is, accordingly, dismissed. No costs.
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