COMMISSIONER OF INCOME TAX Vs. JAHANGANJ COLD STORAGE

JUDGEMENT

(1.) This is an application under Section 256(2) of the Income-tax Act, 1961 (for short "the Act"), at the instance of the Commissioner of Income-tax, Agra. The Appellate Tribunal may be directed to refer the following question, said to be a question of law, for the opinion of this court:

(2.) The assessee, during the assessment year 1983-84, was running a cold storage for storing potatoes and other agricultural produce and its activities were governed under the U. P. Regulation of Cold Storage Act, 1976. By Section 26 of that Act an owner, a licensee, is prohibited from taking or receiving for storage or any other service rendered to the hirer, any amount over and above the charges fixed by the State Government under Section 9 of that Act.

(3.) In 1982, prior to the commencement of the previous year relevant to the assessment year in question, i.e., from February 1, 1982, to January 31, 1983, the Government had fixed the maximum charges at the rate of Rs. 17 per quintal. Till July, 1982, the Government did not issue any order fixing the charges for the season which season fell in the previous year relevant for the year under consideration. The assessee raised the rate of storage to Rs. 18.50 per quintal as against Rs. 17 per quintal fixed earlier. It appears that the Agricultural Production Commissioner, U. P., issued certain directions to all the District Magistrates to persuade cold storage owners not to charge a rate higher than that fixed in the earlier season in 1981. The assessee and certain other cold storage owners, similarly situated, filed writ petitions before this court against the directions of the Agricultural Production Commissioner. This court, vide its order dated July 20, 1982, stayed the operation of the directions issued by the Commissioner. On August 26, 1982, the State Government issued a notification fixing the maximum rate at Rs. 17 per quintal from February 15, -1982, to November 15, 1982. Another writ petition was filed against the notification issued by the Government and under an interim order, the cold storage owners were permitted to realise charges at the rate of Rs. 18.50 per quintal subject to the condition that they would file accounts in this court and would deposit the difference of Rs. 1.50 per quintal in this court. The said order was subsequently modified to the extent that the amount directed to be deposited shall be deposited with the District Magistrates instead of in this court before whom the accounts shall also be furnished by the petitioners.