DCIT, Satara Circle, Satara V. Yashwantrao Mohite Krishna Sahakari Sakhar Karkhana Ltd., Satara

ITA 1013/PUN/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79940 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-07-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 21-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Assessee Lawyers: SHUBHADA A KOPPA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE: SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO S . 1 012 & 1 013 / P N/ 20 1 2 ASSESSMENT YEAR S : 2007 - 08 & 2008 - 09 DY. COMMISSIONER OF INCOME TAX, SATARA CIRCLE , SATARA VS. YESHWANTRAO MOHITE KRISHNA SAHAKARI SAKHAR KARKHANA LTD., (FORMERLY KNOWN AS KRISHNA SSK LTD.), A/P. RETHARE B.K., TAL. - KARAD DISTT. - SATARA (APPELLANT) (RESPONDENT) PAN NO. AAAAK0946L APPELLANT BY: SHRI S .P. WALIMBE RESPONDENT BY: SMT. SHUBHADA A. KOPPA DATE OF HEARING : 01 - 07 - 2014 DATE OF PRONOUNCEMENT : 09 - 07 - 2014 ORDER P ER R.S. PADVEKAR , JM : - TH ESE APPEALS ARE FILED BY THE R EVENUE CHALLENGING THE IMPUGNED ORDER S OF THE LD. CIT(A) - I II , PUN E DATED 14 - 02 - 2012 FOR THE A.Y S . 2007 - 08 & 2008 - 09 . 2. IN BOTH THE APPEALS, THE SOLITARY COMMON ISSUE WHICH ARISES FOR OUR CONSIDERATION IS WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN DELETING THE ADDITION S OF RS.25,94,170/ - AND RS.88,46,090/ - FOR THE A.YS. 2007 - 08 AND 2008 - 09 RESPECTIVELY MADE BY THE ASSESSING OFFICER WITH REFERENCE TO SALE OF SUGAR AT CONCESSIONAL RATES TO THE MEMBERS AND SHAREHOLDERS OF THE SOCIETY W HEN THE ASSESSING OFFICER MADE THE ABOVE ADDITIONS BY HOL DING THAT THE SAID CONCESSIONAL AMOUNTS TO DISTRIBUTION OF PROFIT ? 3 . WE HAVE HEARD THE PARTIES. BOTH THE PARTIES AGREED THAT IN THE PRESENT CASE ALSO THE RELEVANT FACTS ARE NOT ON RECORD AS IN THE CASE OF 2 ITA NO S. 1 012 & 1013/PN/2012, YESHWANTRAO MOHITE KRISHNA SAHAKARI SAKHAR KARKHANA LTD., SATARA CIT VS. KRISHNA SSK LTD. AND O RS. (2012 ) 27 TAXM ANN.COM 162 (SC). THE LD. COUNSEL SUBMITS THAT THE IDENTICAL ISSUE HAS BEEN CONSIDERED BY THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND O RS. (SUPRA). THE HON'BLE SUPREME COURT HAS REMITTED THE MATTER TO THE FILE OF THE CIT(A) WITH DIRECTI ON TO RE - CONSIDER THE MATTER IN THE LIGHT OF THE FOLLOWING DIRECTIONS: THE QUESTION, WHETHER THE ABOVE DIFFERENCE BETWEEN THE FAIR MARKET PRICE AND THE CONCESSIONAL PRICE SHOULD OR SHOULD NSOT BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE SOCIETY, NEED S TO BE RE - LOOKED BY CIT(A). APART FROM THE AFORESAID QUESTION, CIT(A) WOULD TAKE INTO ACCOUNT, WHETHER THE ABOVE MENTIONED PRACTICE OF SELLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM IN THE IN THE CO - OPERATIVE SUGAR INDUSTRY? AND WHE THER ANY RESOLUTION HAS BEEN PASSED BY THE STATE GOVERNMENT SUPPORTING THE PRACTICE? THE CIT(A) WOULD ALSO CONSIDER ON WHAT BASIS THE QUANTITY OF THE FINAL PRODUCT, I.E. SUGAR, IS BEING FIXED FOR SALE OF FARMERS/CANE GROWERS/MEMBERS EACH YEAR ON MONTH TO - MONTH BASIS, APART FROM DIWALI? THERE ARE SOME OF THE QUESTIONS WHICH HAVE NOT BEEN ADDRESSED BY THE AUTHORITIES BELOW IN THE IMPUGNED ORDERS. THE CIT(A) WOULD BE ENTITLED TO LOOK INTO THE ACCOUNTS AND VERIFY THE BASIS FOR SALE OF SUGAR AT CONCESSIONAL P RICE ON MONTH - TO - MONTH BASIS WE THEREFORE, KEEP ALL QUESTIONS OF LAW AND FACTS OPEN. NEEDLESS TO ADD, THE CIT(A) WOULD GIVE LIBERTY TO BOTH THE SIDES TO PRODUCE RELEVANT DOCUMENTS. FOR THE ABOVE REASONS, WE REMIT THE CASES TO CIT(A) TO DE - NOVO CONSIDER THE MATTER. 4 . WE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND O RS. (SUPRA) RESTORE THE ISSUE TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION IN THE LIGHT OF THE 3 ITA NO S. 1 012 & 1013/PN/2012, YESHWANTRAO MOHITE KRISHNA SAHAKARI SAKHAR KARKHANA LTD., SATARA ABOVE DIRECTIONS GIVE N BY THE APEX COURT IN THE CASE OF KRISHNA SSK LTD. AND O RS. (SUPRA). ACCORDINGLY, THE GROUNDS TAKEN BY THE REVENUE ON THIS ISSUE IN BOTH THE APPEALS ARE ALLOWED FOR THE STATISTICAL PURPOSES. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE ALLOWED FOR THE STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 09 - 07 - 2014 SD/ - SD/ - ( R.K. PANDA ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JUDICIAL MEMBER RK /PS PUNE , DATED : 09 TH JULY, 2014 COPY TO 1 DEPAR TMENT 2 ASSESSEE 3 THE CIT(A) - I II , PUNE 4 THE CIT - III, PUNE 5 THE DR, ITAT, B BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE