DCM LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IT Appeal No. 588 of 2004 1. Admit. On the identical issue, the appeals are pending before us for previous years. The following question of law is required to be determined by this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the sum of Rs. 10,69,542 credited to molasses storage fund out of the sale proceeds of molasses was to be included in the income of the appellant - In the other two appeals, the question is identical except the amount. IT Appeal No. 588 of 2004 and IT Appeal Nos. 4 & 99 of 2002 At the request of the learned counsel appearing for the assessee as well as the Revenue, we are disposing of all the three appeals, namely, IT Appeal Nos. 4 of 2002 and 99 of 2002 and the present appeal being IT Appeal No. 588 of 2004 for the asst. yrs. 1984 -85, 1985 -86 and 1986 -87, respectively.

(2.) THE assessee is a public limited company engaged in the manufacture of various articles including sugar. Under the provisions contained in the Molasses Control (Regulation of Fund for Erection of Storage Facilities) Order, 1976, which is required to be read with Molasses Control Order, 1961, issued in exercise of powers under s. 18G of the Industries (Development and Regulation) Act, 1951, the assessee was required to maintain a molasses storage fund and was required to maintain accounts as indicated under cl. 3 of the order and was obliged to utilise the amount as indicated in cl. 4 of the order. The assessee had no control over the fund when it was deposited in the bank as the amount was required to be deposited in accordance with the order and for the purpose and the manner indicated therein.

(3.) WE have heard the learned counsel at length and in the opinion of the Court, the case is entirely covered by the decision of the Madras High Court in CIT vs. Salem Co -operative Sugar Mills Ltd. (1997) 138 CTR (Mad) 352 : (1998) 229 ITR 285 (Mad) and, as contended by the learned counsel for the assessee, by several other decisions of various High Courts which are referred to hereunder :