CIT v. Mehsana District Co-operative Milk Producers Union Ltd.

146 Taxmann 355High Court2006#8591 most cited

What is CIT v. Mehsana District Co-operative Milk Producers Union Ltd. authority for?

Payments made by a milk cooperative union to its member societies based on the quantity of milk supplied, representing a final rate difference, are not distributions of profit and are allowable as business expenditure. This is because the resolutions to pay were passed before the end of the financial year, even if disbursement occurred later.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2018 to 2025.

Also referred to as

CIT v. Mehsana District Co-operative Milk Producers Union Ltd. · 282 ITR 24 · Gujarat High Court · milk cooperative · business expense · profit sharing · rate difference · member societies

Also reported as

282 ITR 24

Sections most often in play

Section 155(19)Section 254Section 36(1)(xvii)Section 37(1)Section 40A(2)Section 142(1)Section 143(3)Section 144B(8)
Read the full judgment

Issues it is cited on

section 43(3)wholly and exclusively for businesssection 155audi alteram partemsection 40a(2)unabsorbed depreciationrule of consistencycommercial expediencysection 31right to receivebusiness expediencysection 254

Judgments citing CIT v. Mehsana District Co-operative Milk Producers Union Ltd.

Shree Khedut Sahakari Khand Udyog Mandli Ltd., Bardoli vs. Income Tax Officer, Ward-1, Bardoli

ITA 738/SRT/2023[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Udhyog VS. ITO, Mandli Ltd., Baben, Bardoli, Surat - 394601, Gujarat Ward 1, Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. VS. ACIT, Navsari Circle, Navsari स्थायीलेख…

ACIT, Na vs. Ari Circle, Navsarivs.M/S. Maroli Vibhag Khand Udyog Sahakari Mandali Ltd., Navsari

ITA 225/SRT/2020[2014-15]Status: DisposedITAT Surat25 Nov 2025AY 2014-15

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Udhyog VS. ITO, Mandli Ltd., Baben, Bardoli, Surat - 394601, Gujarat Ward 1, Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. VS. ACIT, Navsari Circle, Navsari स्थायीलेख…

ACIT, Na vs. Ari Circle., Navsarivs.M/S. Maroli Vibhag Khand Udyog Sahakari Mandali Ltd, Navasari

ITA 224/SRT/2020[2013-14]Status: DisposedITAT Surat25 Nov 2025AY 2013-14

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Vs. ITO, Mandli Ltd., Baben, Ward 1, Bardoli, Surat - 394601, Gujarat Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. Vs. ACIT, Navsari Circle, Navsari स्थायीलेखासं./जी…

ACIT, Na vs. Ari Circle, Navsarivs.M/S. Maroli Vibhag, Kand Udyog Sahakari Mandali Ltd., Navsari

ITA 222/SRT/2020[2011-12]Status: DisposedITAT Surat25 Nov 2025AY 2011-12

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Udhyog Mandli Ltd., Baben, Bardoli, Surat - 394601, Gujarat VS. ITO, Ward 1, Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. VS. ACIT, Navsari Circle, Navsari स्थायीलेख…

Sahakari Khand Uduog Mandal Ltd., Na vs. Arivs.DCIT, Navsari Circle, Navsari

ITA 213/SRT/2020[2013-14]Status: DisposedITAT Surat25 Nov 2025AY 2013-14

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Udhyog VS. ITO, Mandli Ltd., Baben, Bardoli, Surat - 394601, Gujarat Ward 1, Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. VS. ACIT, Navsari Circle, Navsari स्थायीलेख…

Sahadari Khand Udyog Mandal Ltd., Na vs. Arivs.ACIT, Navsari Circle, Navsari

ITA 212/SRT/2020[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Udhyog Mandli Ltd., Baben, Bardoli, Surat - 394601, Gujarat vs. ITO, Ward 1, Bardoli स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. vs. ACIT, Navsari Circle, Navsari स्थायीलेखा…

Sahakari Khand Udyog Mandal Ltd., Gandevi vs. ACIT, Navsari Circle, Navsari

ITA 211/SRT/2020[2011-12]Status: DisposedITAT Surat25 Nov 2025AY 2011-12

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYS: (2012-13 and 2016-17) (Physical Hearing) Shree Khedut Sahakari Khand Udhyog VS. ITO, Mandli Ltd., Baben, Ward 1, Bardoli, Surat - 394601, Gujarat Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15) Sahakari Khand Udhyog Mandal Ltd. Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. VS. ACIT, Navsari Circle, Navsari स्थायीलेख…

Shree Narmada Khand Udyog Sahkari Mandali Ltd., Narmada vs. Income Tax Officer, Ward - 2(1), Bharuch

In the result, the grounds of appeal raised by the assesse are allowed

ITA 104/SRT/2023[2014-15]Status: DisposedITAT Surat31 Oct 2023AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 234ASection 254(1)Section 271(1)(c)Section 28Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA Nos. 102, 103 & 104/Srt /2023 (Assessment Years: 2012-13, 2013-14 & 2014-15) (Virtual hearing) Shree Narmada Khand Udyog I.T.O., Ward-2(1), Sahkari Mandli Ltd., Bharuch. Vs. Village-Dharikheda, PO-Timbi, Taluka-Nandod, District-Narmada (Gujarat)-393140. PAN No. AAAAS 2249 E Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Saurabh Soparkar, Senior Advocate with Ms. Urvashi Shodhan, Advocate. Revenue represented by Shri Airiju Jaikaran, CIT-DR Date of…

Shree Narmada Khand Udyog Sahkari Mandali Ltd., Narmada vs. Income Tax Officer, Ward - 2(1), Bharuch

In the result, the grounds of appeal raised by the assesse are allowed

ITA 103/SRT/2023[2013-14]Status: DisposedITAT Surat31 Oct 2023AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 234ASection 254(1)Section 271(1)(c)Section 28Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA Nos. 102, 103 & 104/Srt /2023 (Assessment Years: 2012-13, 2013-14 & 2014-15) (Virtual hearing) Shree Narmada Khand Udyog I.T.O., Ward-2(1), Sahkari Mandli Ltd., Bharuch. Vs. Village-Dharikheda, PO-Timbi, Taluka-Nandod, District-Narmada (Gujarat)-393140. PAN No. AAAAS 2249 E Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Saurabh Soparkar, Senior Advocate with Ms. Urvashi Shodhan, Advocate. Revenue represented by Shri Airiju Jaikaran, CIT-DR Date of…

Shree Narmada Khand Udyog Sahkari Mandali Ltd., Narmada vs. Income Tax Officer, Ward - 2(1), Bharuch

In the result, the grounds of appeal raised by the assesse are allowed

ITA 102/SRT/2023[2012-13]Status: DisposedITAT Surat31 Oct 2023AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 234ASection 254(1)Section 271(1)(c)Section 28Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA Nos. 102, 103 & 104/Srt /2023 (Assessment Years: 2012-13, 2013-14 & 2014-15) (Virtual hearing) Shree Narmada Khand Udyog I.T.O., Ward-2(1), Sahkari Mandli Ltd., Bharuch. Vs. Village-Dharikheda, PO-Timbi, Taluka-Nandod, District-Narmada (Gujarat)-393140. PAN No. AAAAS 2249 E Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Saurabh Soparkar, Senior Advocate with Ms. Urvashi Shodhan, Advocate. Revenue represented by Shri Airiju Jaikaran, CIT-DR Date of…

The Dy. CIT., Anand Circle, Anand vs. M/S. Kaira Dist. Co.-Op. Milk Producers Union Ltd., Anand

In the result, the appeal of the revenue is dismissed

ITA 2218/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad03 Oct 2019AY 2012-13

Bench: Shri Kul Bharat & Shri Waseem Ahmedआयकर अपील सं./Ita No.2218/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, M/S. Kaira District Co-Op. Milk, Anand Circle, Vs. Producers Union Ltd., Anand. Amul Dairy Road, Anand-388001. Pan: Aaaak8694F

For Appellant: Shri Yogesh Shah A.R
Section 143(3)Section 15Section 32(1)Section 36Section 80P(2)(d)

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’A’’ BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2218/AHD/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, M/s. Kaira District Co-op. Milk, Anand Circle, Vs. Producers Union Ltd., Anand. Amul Dairy Road, Anand-388001. PAN: AAAAK8694F (Applicant) (Respondent) : Revenue by Shri O.P. Vaishnav, CIT.D.R Assessee by : Shri Yogesh Shah A.R सुनवाई क" तार"ख/Date of Hearing : 01/10/2019 घोषणा क" तार"ख /Date of Pronouncement: 03/10/2019 आदेश/O R D E R PER WASEEM AHMED ACCOU…

Assistant Commissioner of Income-Tax vs. Shri Warana Sah. Dudh Utadak Prakriya Sangh Ltd., Kolhapur

In the result, all the 3 appeals of the Revenue are allowed for statistical

ITA 1096/PUN/2016[2011-12]Status: DisposedITAT Pune17 Aug 2018AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita Nos. 1094 To 1096/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Years : 2007-08, 2009-10 & 2011-12 िनधा"रण वष" िनधा"रण वष"

For Appellant: Shri M.K. KulkarniFor Respondent: Shri Rajesh Gawali

…from time to time. In view of the co-operative principles, assessee tend to pass on the maximum price to its member societies. Similar situation was obtaining in CIT vs. Mehsana District Co-operative Milk Producers Union Ltd. (2005) 195 CTR (Guj) 385 : (2006) 282 ITR 24 (Guj) wherein Gujarat High Court has answered similar issue in favour of the assessee. (iv) The resolutions to pay final rate difference were always passed in the month of March every year i.e., before the end of previous year and only the resolutions to disburse the amounts were passed after the year end. Rate difference was paid only on the bas…

Assistant Commissioner of Income-Tax vs. Shri Warana Sah. Dudh Utadak Prakriya Sangh Ltd., Kolhapur

In the result, all the 3 appeals of the Revenue are allowed for statistical

ITA 1095/PUN/2016[2009-10]Status: DisposedITAT Pune17 Aug 2018AY 2009-10

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita Nos. 1094 To 1096/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Years : 2007-08, 2009-10 & 2011-12 िनधा"रण वष" िनधा"रण वष"

For Appellant: Shri M.K. KulkarniFor Respondent: Shri Rajesh Gawali

…from time to time. In view of the co-operative principles, assessee tend to pass on the maximum price to its member societies. Similar situation was obtaining in CIT vs. Mehsana District Co-operative Milk Producers Union Ltd. (2005) 195 CTR (Guj) 385 : (2006) 282 ITR 24 (Guj) wherein Gujarat High Court has answered similar issue in favour of the assessee. (iv) The resolutions to pay final rate difference were always passed in the month of March every year i.e., before the end of previous year and only the resolutions to disburse the amounts were passed after the year end. Rate difference was paid only on the bas…

CIT v. Mehsana District Co-operative Milk Producers Union Ltd. (146 Taxmann 355) — Cited in 13 Judgments | BharatTax