ITO, Ward-1, Satara V. Sahayadri SSK Ltd., Satara

ITA 151/PUN/2013

• Counselvise Citation: 15124514 RSA 2013
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 16-01-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE

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.151/PN/2013 (ASST. YEAR: 2009-10) ITO, WARD-1, SATARA APPELLANT VS. SAHAYADRI SAHAKARI SAKHAR KARAKHANA LTD., YESHWANTNAGAR, KARAD, DIST. SATARA. PAN:AAAAS4070K RESPONDENT ITA NO.160/PN/2013 (ASST. YEAR: 2009-10) ACIT, CIRCLE-1, SOLAPUR APPELLANT VS. SHRI VITHAL SAHAKARI SAKHAR KARKHANA LTD., A/P VENUNAGAR GURSALE, TAL-PANDHARPUR, DIST. SOLAPUR. PAN:AAAAS3892H RESPONDENT APPELLANT BY : SHRI S.P. WALIMBE RESPONDENT BY : SHRI M.K. KULKARNI DATE OF HEARING : 06-02-2014 DATE OF PRONOUNCEMENT : 06-02-2014 ORDER PER R.S. PADVEKAR, JM: THESE TWO APPEALS ARE FILED BY REVENUE CHALLENGING THE RESPECTIVE IMPUGNED ORDERS OF THE LD. CIT(A)-III, PUNE DATED 1 9-10-2012 FOR THE A.Y. 2009-10. THE FACTS AS WELL AS ISSUE ARE COMMO N IN BOTH THE APPEALS, HENCE, THESE APPEALS ARE DISPOSED OF BY TH IS COMMON ORDER. 2 2. THE REVENUE HAS TAKEN MULTIPLE GROUNDS. THE ISS UE BEFORE US IS WHETHER THE LD.CIT(A) HAS JUSTIFIED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER TOWARDS THE SALE OF SUGAR AT CONC ESSIONAL RATES TO THE MEMBERS AND NON-MEMBERS OF THE ASSESSEE KARKHANA. 3. WE HAVE HEARD THE PARTIES. THE ISSUE IN THIS CAS E IS WHETHER THE CIT(A) JUSTIFIED IN DELETING THE ADDITION MADE ON A CCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATE TO THE MEMBERS. WE FIND THAT THE IDENTICAL ISSUE HAS COME BEFORE THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. KRISHNA SSK LTD. AND OTHERS IN CIVIL APPEAL NO. 695 0 OF 2012 ETC. JUDGMENT DATED 25-09-2012 AND THE HON'BLE SUPREME C OURT REMITTED THE MATTER BACK TO THE FILE OF THE LD. CIT(A) FOR R E-CONSIDERATION BY GIVING THE FOLLOWING DIRECTIONS: 'THE QUESTION, WHETHER THE ABOVE DIFFERENCE BETWEEN THE FAIR MARKET PRICE AND THE CONCESSIONAL PRICE SHOULD OR S HOULD NSOT BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE SOCIETY, NEEDS TO BE RE- LOOKED BY CIT(A). APART FROM THE AFORESAID QUESTION, CIT(A) WOULD TAK E INTO ACCOUNT, WHETHER THE ABOVE MENTIONED PRACTICE OF SE LLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM IN THE IN THE CO-OPERATIVE SUGAR INDUSTRY? AND WHETHER ANY RESOLU TION HAS BEEN PASSED BY THE STATE GOVERNMENT SUPPORTING THE PRACTICE? THE CIT(A) WOULD ALSO CONSIDER ON WHAT BASIS THE QU ANTITY 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. TH E CIT(A) WOULD BE ENTITLED TO LOOK INTO THE ACCOUNTS AND VER IFY THE BASIS FOR SALE OF SUGAR AT CONCESSIONAL PRICE ON MONTH-TO-MON TH BASIS WE THEREFORE, KEEP ALL QUESTIONS OF LAW AND FACTS OPEN . NEEDLESS TO ADD, THE CIT(A) WOULD GIVE LIBERTY TO B OTH THE SIDES TO PRODUCE RELEVANT DOCUMENTS. 3 FOR THE ABOVE REASONS, WE REMIT THE CASES TO CIT(A) TO DE-NOVO CONSIDER THE MATTER.' 4. IN THE PRESENT CASE ALSO THE MATERIAL AND RELEVA NT FACTS ARE NOT ON RECORD AS IN THE CASE OF KRISHNA SSK LTD. AND OTHE RS (SUPRA). WE, THEREFORE, RESPECTFULLY FOLLOWING THE JUDGMENT OF T HE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND OTHERS (S UPRA) RESTORE THE ISSUE TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICAT ION IN THE LIGHT OF ABOVE DIRECTIONS GIVEN BY THE HON'BLE SUPREME COURT IN TH E CASE OF KRISHNA SSK LTD. AND OTHERS (SUPRA). ACCORDINGLY, THE GRO UNDS TAKEN BY THE REVENUE ARE ALLOWED FOR THE STATISTICAL PURPOSES. 5. IN THE RESULT, THE REVENUE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE 6 TH DAY OF FEBRUARY, 2014. SD/- SD/- (R.K. PANDA) (R.S. PADVEKAR) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED 6 TH FEBRUARY, 2014 GCVSR COPY TO:- 1) DEPARTMENT 2) ASSESSEE 3) THE CIT(A) III, PUNE 4) THE CIT-III, PUNE 5) THE DR, B BENCH, I.T.A.T., PUNE 6) GUARD FILE BY ORDER //TRUE COPY// SENIOR PRIVATE SECRETARY ITAT PUNE BENCHES, PUNE