Sahyadri Sahakari Sakhar Karkhana Ltd., Satara V. Income-tax Officer,

ITA 2288/PUN/2014

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1483 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 06-08-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 26-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO S.2288 & 867 /PUN/201 4 / ASSESSMENT YEAR S : 20 0 9 - 10 & 2010 - 11 S AHYADRI SAHAKARI SAKHAR KARKHANA LTD., A/P. YASHWANT NAGAR, TAL. - KARAD, DISTT. SATARA PAN : AAAAS4070K ....... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD 1, SATARA / RESPONDENT ASSESSEE BY : SHRI M.K. KULKARNI REVENUE BY : SHRI UODAL RAJ SINGH / DATE OF HEARING : 06 - 08 - 2019 / DATE OF PRONOUNCEMENT : 27 - 0 8 - 2019 / ORDER PER VIKAS AWASTHY, JM : TH ESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - III, PUNE FOR THE ASSESSMENT YEARS 2009 - 10 DATED 06 - 06 - 2014 AND 2010 - 11 DATED 01 - 01 - 2014 , RESPECTIVELY. 2. THE APPEAL OF THE ASSESSEE IN ITA NO. 2288/PUN/2014 IS TIME BARRED BY 101 DAYS. THE ASSESSEE HAS FILED AN APPLICATION SEEKING CONDONATION OF 2 ITA NO S. 2288 & 867/PUN/2014, A.YS. 2009 - 10 & 2010 - 11 DELAY IN FILING OF THE APPEAL SUPPORTED BY AN AFFIDAVIT. AFTER PERUSAL OF THE SAME, WE ARE SATISFIED THAT THE DELAY IN FILING OF THE APPEAL IS NOT INTENTIONAL OR DELIBERATE BUT HAS BEEN CAUSED DUE TO BONAFIDE REASONS AS STATED IN THE AFFIDAVIT. THUS, THE DELAY IN FILING OF APPEAL IS CONDONED AND THE APPEAL IS ADMITTED TO BE HEARD AND DISPOSED OF ON MERITS. 3. SHRI M.K. KULKARNI APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS ENGAGED IN MANUFACTURING OF WHITE SUGAR. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE COMMON ISSUE RAISED IN BOTH THE APPEAL S BY THE ASSESSEE IS AGAINST ADDITION ON ACCOUNT OF PAYMENT OF EXCESS SUGAR CANE PRICE PAID BY THE ASSESSEE T O THE FARMERS, I.E. THE PRICE OVER AND ABOVE THE STATUTORY MINIMUM PRICE (SMP) FIXED BY STATE GOVERNMENT FOR PURCHASE OF CANE. THE LD. COUNSEL SUBMITTED THAT THE ISSUE RAISED IN PRESENT APPEAL S BY THE ASSESSEE HAS ALREADY BEEN CONSIDERED AND ADJUDICATED BY THE CO - ORDINATE BENCH OF TRIBUNAL IN BUNCH OF APPEALS WITH THE LEAD CASE DCIT VS. VASANT RAO DADA PATIL SSK LTD. , ITA NOS.50 TO 52/PUN/2012 FOR THE ASSESSMENT YEARS 1992 - 93, 1994 - 95 & 1996 - 97 , RESPECTIVELY VIDE ORDER DATED 20.03.2019 . THE TRIBUNAL HAS RESTORED THE ISSUE BACK TO THE FILE OF ASSESSING OFFICER FOR DE - NOVO ADJUDICATION. 3.1 THE LD. COUNSEL FURTHER SUBMITTED THAT ANOTHER ISSUE IN APPEAL FOR ASSESSMENT YEAR 2010 - 11 IS SALE OF SUGAR AT CONCESSIONAL RATE TO THE MEMBERS. THIS ISSUE HAS ALSO BEEN CONSIDERED BY THE TRIBUNAL IN THE CASE OF DCIT VS. VASANT RAO DADA PATIL SSK LTD. (SUPRA). THE ISSUE CAN BE RESTORED TO ASSESSING OFFICER WITH SIMILAR DIRECTIONS. 3 ITA NO S. 2288 & 867/PUN/2014, A.YS. 2009 - 10 & 2010 - 11 4. SHRI UODAL RAJ SINGH REPRESENTING THE DEPARTMENT FAIRLY SUBMITTED THAT THE ISSUE OF EXCESS CANE PRICE PAID BY THE ASSESSEE SUGAR FACTORIES TO THE FARMERS HAS BEEN RESTORED BACK TO THE FILE OF ASSESSING OFFICER BY THE TRIBUNAL IN BUNCH OF APPEALS. THEREFORE, THIS ISSUE CAN ALSO BE RESTORED TO THE FILE OF ASSESSING OFFICER WITH SIMILAR DIRECTIONS. 5. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BELOW PERUSED. THE ASSESSEE IS A CO - OPERATIVE SOCIETY ENGAGED IN MANUFACTURING OF SUGAR. THE ASSESSEE IS PURCHASING SUGAR CANE FROM ITS MEMBERS AND NON - MEMBERS. THE ASSESSEE HAS MADE PAYMENT FOR PURCHASE OF SUGAR CANE FROM FARMERS AT PRICE HIGHER THAN THE FIXED AND REMUNERATIVE PRICE (FRP ) OF THE GOVERNMENT. THE AUTHORITIES BELOW HAVE DISALLOWED THE DIFFERENCE BETWEEN THE PRICE PAID BY THE ASSESSEE AND FRP FIXED BY THE GOVERNMENT. THE CO - ORD INATE BENCH OF TRIBUNAL IN THE CASE OF DCIT VS. VASANT RAO DADA PATIL SSK LTD. (SUPRA) HAS RESTORED THIS ISSUE BACK TO THE FILE OF ASSESSING OFFICER TO BE DECIDED IN THE LIGHT OF JUDGMENT RENDERED BY HONBLE SUPREME COURT IN THE CASE OF CIT VS. TASGAON TAL UKA S.S.K. LTD. REPORTED AS 103 TAXMANN.COM 57 . WE DEEM IT APPROPRIATE TO RESTORE THIS ISSUE BACK TO THE FILE OF ASSESSING OFFICER WITH SIMILAR DIRECTIONS. THE ISSUE IS ALLOWED FOR STATISTICAL PURPOSE. 6. THE SECOND ISSUE IN APPEAL FOR ASSESSMENT YEAR 2010 - 11 IS SALE OF SUGAR AT CONCESSIONAL RATE TO THE MEMBERS. THIS ISSUE WAS ALSO CONSIDERED BY THE TRIBUNAL IN THE CASE OF DCIT VS. VASANT RAO DADA PATIL SSK LTD. (SUPRA). THE CO - ORDINATE BENCH HAS RESTORED THE ISSUE TO ASSESSING OFFICER FOR DE - NOVO AD JUDICATION ON THE TOUCHSTONES OF THE FACT ORS HIGHLIGHTED BY THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF COMMISSIONER OF INCOME 4 ITA NO S. 2288 & 867/PUN/2014, A.YS. 2009 - 10 & 2010 - 11 TAX VS. KRISHNA SSK LTD. REPORTED AS 211 TAXMAN 109. THUS, WE DEEM IT APPROPRIATE TO RESTORE THE ISSUE BACK TO ASSESSING O FFICER WITH SIMILAR DIRECTIONS. THE ISSUE IS ALLOWED FOR STATISTICAL PURPOSE. 7. IN THE RESULT, B OTH THE APPEAL S OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON TUESDAY, THE 27 TH DAY OF AUGUST, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 27 TH AUGUST, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - III, PUNE 4. / THE CIT - III, PUNE 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE