compulsory deductions made by sugar cooperative
societies on account of non-refundable and refundable
deposits and other Funds are revenue receipts liable to be
taxed ... take up the controversial issues for
consideration.
Non-refundable deposits
The taxability of 'non-refundable deposits' being the
most contentious issue in these
question of taxing the non-refundable deposits received from the members. The expression "non-refundable deposits" was explained by the assessee to mean ... non-refundable deposists must be treated as trading receipts in the hand of the assessee. When it came to taxing the non-refundable deposits
Notwithstanding the use of the nomenclature of 'deposit', the so-called non-refundable deposits were in essence the consideration paid by the shareholder ... their basic nature of being deposits cannot be lost or forgotten, and they continue to be non-refundable deposits on which under contractual obligation
Members' non-refundable deposits ;
(viii) Members' refundable deposits ;
(ix) Non-members refundable deposits ; and
(x) Voluntary deposits of members' fund.
Accordingly, various ... categorically states that the deposits shall not be refunded to members. These are non-refundable deposits covered by bye-law No. 61A. However, under clause
hutments fund, members' non-refundable deposits and members' refundable deposits as also on account of voluntary deposits of members' funds. After examining ... erred in coming to the conclusion that non-refundable deposits and interest on non-refundable deposits are not trading receipts. In other words, in view
genuine tax planning scheme. There was no possibility for refunding the non-refundable deposits as stated in the bye-laws of the appellant itself ... non-refundable deposits were collected :
" 61 A, -- (1) Every year the society shall collect from the members non-refundable deposit at the rate
dated 31.12.2003 authorising the Corporation to collect non-
refundable deposit from existing drainage connection holders or for new
connection. Likewise, monthly maintenance charges levied thereon ... refundable deposit
for connection to the underground drainage, demand notices were sent to the
house owners calling upon them to pay non-refundable deposit
crores is not consideration but represents Non
Refundable Deposit & will remain as Non refundable Deposit till such time
the Developer completes his part ... transferred to income from the Non-Refundable deposit of Rs.100
crores & the Non-Refundable Deposit as on 31st March of the said financial
property and as per
agreement dated 02.02.2009, the refundable deposit was converted
into non-refundable deposit which corroborate the fact that the
possession ... property and as per
agreement dated 02.02.2009, the refundable deposit was converted
into non-refundable deposit which corroborate the fact that the
possession
Memers 'Non-refundable Deposits,
(viii) Members' Refundable Deposits,
(ix) Non-members Refundable Deposits, and
(x) Voluntary Deposits of Members Fund.
Accordingly, various amounts ... categorically states that the deposits shall not be refunded to members. These are non-refundable deposits covered by bye-law No. 61A. However, under clause
