Pd. Dr. Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana Ltd, Ahmednagar V. Assistant Commissioner of Income-tax,

ITA 2553/PUN/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7199 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 09-11-2016

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO . 2 5 53 /PUN/201 6 / ASSESSMENT YEAR : 20 09 - 10 PD. DR. VITHALRAO VIKHE PATIL SAHAKARI SAKHAR KARKHANA LTD., AT POST PRAVARANAGAR, TAL. - RAHATA, DISTT. - AHMEDNAGAR, PIN 413712 PAN : AAAAP0848A ....... / APPELLANT / V/S. ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR / RESPONDENT ASSESSEE BY : SHRI K. SRINIVASAN REVENUE BY : SHRI ALOK MALVIYA / DATE OF HEARING : 2 7 - 08 - 2020 / DATE OF PRONOUNCEMENT : 03 - 0 9 - 2020 / ORDER PER S.S. VISWANETHRA RAVI, JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 05 - 07 - 2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 2, PUNE [CIT(A)] FOR ASSESSMENT YEAR 20 09 - 10. 2. THE ASSESSEE IN THE PRESENT APPEAL IS ENGAGED IN MANUFACTURING OF MENTIONED IN WHITE SUGAR. THE ISSUES RAISED IN TH IS APPEAL ARE : 2 ITA NO . 2553/PUN/2016, A.Y. 2009 - 10 I . EXCESS CANE PRICE PAID BY THE ASSESSEE TO SUGARCANE SUPPLIERS, I.E. THE PRICE OVER AND ABOVE THE S TATUTORY M INIMUM P RICE (SMP) FIXED BY STATE GOVERNMENT FOR PURCHASE OF CANE. II . ADDITION ON ACCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATE TO THE MEMBERS /SHAREHOLDERS BY THE ASSESSEE . III . DISALLOWANCE O F CANE HARVESTING AND TRANSPORTATION EXPENDITURE. 3. THE LD. AR, SHRI K. SRINIVASAN AND THE LD. DR, SHRI ALOK MALVIYA SUBMITTED AT THE OUTSET THAT THE ISSUES RAISED IN PRESENT APPEAL HAS ALREADY BEEN CONSIDERED AND ADJUDICATED BY THE CO - ORDINATE BENCH OF TRIBUNAL IN BUNCH OF APPEALS . THE FACTS AND ISSUES RAISED IN PRESENT APPEAL ARE SIMILAR. THE LD. DR FURNISHED COPY OF ORDER OF TRIBUNAL DATED 14 - 03 - 2019 VIDE WHICH BUNCH OF 162 APPEALS WERE DISPOSED OF BY THE CO - ORDINATE BENCH , T HE LEAD CASE BEING MAJA LGAON SAHAKARI SAKHAR KARKHANA LTD. VS. ACIT IN ITA NO. 308/PUN/2018 FOR THE ASSESSMENT YEAR 2013 - 14. 4 . AFTER H EARING BOTH THE SIDES AND AFTER CONSIDERING THE ORDER OF CO - ORDINATE BENCH IN THE CASE OF MAJALGAON SAHAKARI SAKHAR KARKHANA LTD. VS. ACIT (S UPRA) ETC. , WE OBSERVE THAT THE ISSUES RAISED IN THE PRESENT APPEAL HAS ALREADY BEEN CONSIDERED AND DECIDED BY THE CO - ORDINATE BENCH . (I) EXCESS CANE PRICE PAID TO SUGARCANE SUPPLIERS 5 . THE CO - ORDINATE BENCH AFTER CONSIDERING THE JUDGMENT OF HONBLE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. TASGAON TALUKA S.S.K. LTD. REPORTED AS 103 TAXMANN.COM 57 HAS DECIDED THIS ISSUE AS UNDER : 5. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THERE IS CONSENSUS AD IDEM BETWEEN THE RIVAL PARTIES THAT THE ISSUE OF PAYMENT OF EXCESSIVE PRICE ON PURCHASE OF SUGARCANE BY THE ASSESSES IS NO MORE RES INTEGRA IN VIEW OF THE RECENT JUDGMENT OF HONBLE SUPREME COURT IN CIT VS. TASGAON TALUKA S.S.K. LTD. (2019) 103 TAXMANN.COM 57 (SC). THE HONBLE APEX COURT, VIDE ITS JUDGMENT DATED 05 - 03 - 2019, HAS 3 ITA NO . 2553/PUN/2016, A.Y. 2009 - 10 ELABORATELY DEALT WITH THIS ISSUE. IT RECORDED THE FACTUAL MATRIX THAT THE ASSESSEE IN THAT CASE PURCHASED AND CRUSHED SUGARCANE AND PAID PRICE FOR THE PURCHASE DURING CRUSHING SEASONS 199 6 - 97 AND 1997 - 98, FIRSTLY, AT THE TIME OF PURCHASE OF SUGARCANE AND THEN, LATER, AS PER THE MANTRI COMMITTEE ADVICE. IT FURTHER NOTED THAT THE PRODUCTION OF SUGAR IS COVERED BY THE ESSENTIAL COMMODITIES ACT, 1955 AND THE GOVERNMENT ISSUED SUGAR CANE (CONT ROL) ORDER, 1966, WHICH DEALS WITH ALL ASPECTS OF PRODUCTION OF SUGARCANE AND SALES THEREOF INCLUDING THE PRICE TO BE PAID TO THE CANE GROWERS. CLAUSE 3 OF THE SUGAR CANE (CONTROL) ORDER, 1966 AUTHORIZES THE GOVERNMENT TO FIX MINIMUM SUGARCANE PRICE. IN ADDITION, THE ADDITIONAL SUGARCANE PRICE IS ALSO PAYABLE AS PER CLAUSE 5A OF THE CONTROL ORDER, 1966. THE AO IN THAT CASE CONCLUDED THAT THE DIFFERENCE BETWEEN THE PRICE PAID AS PER CLAUSE 3 OF THE CONTROL ORDER, 1966 DETERMINED BY THE CENTRAL GOVERNMENT AND THE PRICE DETERMINED BY THE STATE GOVERNMENT UNDER CLAUSE 5A OF THE CONTROL ORDER, 1966, WAS IN THE NATURE OF `DISTRIBUTION OF PROFITS AND HENCE NOT DEDUCTIBLE AS EXPENDITURE. HE, THEREFORE, MADE AN ADDITION FOR SUCH SUM PAID TO MEMBERS AS WELL A S NON - MEMBERS. WHEN THE MATTER FINALLY CAME UP BEFORE THE HONBLE APEX COURT, IT NOTED THAT CLAUSE 5A WAS INSERTED IN THE YEAR 1974 ON THE BASIS OF THE RECOMMENDATIONS MADE BY THE BHARGAVA COMMISSION, WHICH RECOMMENDED PAYMENT OF ADDITIONAL PRICE AT THE E ND OF THE SEASON ON 50:50 PROFIT SHARING BASIS BETWEEN THE GROWERS AND FACTORIES, TO BE WORKED OUT IN ACCORDANCE WITH THE SECOND SCHEDULE TO THE CONTROL ORDER, 1966. THEIR LORDSHIPS NOTED THAT AT THE TIME WHEN ADDITIONAL PURCHASE PRICE IS DETERMINED/FIXED UNDER CLAUSE 5A, THE ACCOUNTS ARE SETTLED AND THE PARTICULARS ARE PROVIDED BY THE CONCERNED CO - OPERATIVE SOCIETY AS TO WHAT WILL BE THE EXPENDITURE AND WHAT WILL BE THE PROFIT ETC. CONSIDERING THE FACT THAT STATUTORY MINIMUM PRICE (SMP), DETERMINED UNDER CLAUSE 3 OF THE CONTROL ORDER, 1966, WHICH IS PAID AT THE BEGINNING OF THE SEASON, IS DEDUCTIBLE IN THE ENTIRETY AND THE DIFFERENCE BETWEEN SMP DETERMINED UNDER CLAUSE 3 AND SAP/ADDITIONAL PURCHASE PRICE DETERMINED UNDER CLAUSE 5A, HAS AN ELEMENT OF DISTRI BUTION OF PROFIT WHICH CANNOT BE ALLOWED AS DEDUCTION, THE HONBLE SUPREME COURT REMITTED THE MATTER TO THE FILE OF THE AO FOR CONSIDERING THE MODALITIES AND MANNER IN WHICH SAP/ADDITIONAL PURCHASE PRICE/FINAL PRICE IS DECIDED. HE HAS BEEN DIRECTED TO CAR RY OUT AN EXERCISE OF CONSIDERING ACCOUNTS/BALANCE SHEET AND THE MATERIAL SUPPLIED TO THE STATE GOVERNMENT FOR THE PURPOSE OF DECIDING/FIXING THE FINAL PRICE/ADDITIONAL PURCHASE PRICE/SAP UNDER CLAUSE 5A OF THE CONTROL ORDER, 1966 AND THEREAFTER DETERMINE AS TO WHAT AMOUNT WOULD FORM PART OF THE DISTRIBUTION OF PROFIT AND THE OTHER AS DEDUCTIBLE EXPENDITURE. THE RELEVANT FINDINGS OF THE HONBLE APEX COURT ARE REPRODUCED AS UNDER: - 9.4. ..... THEREFORE, TO THE EXTENT OF THE COMPONENT OF PROFIT WHICH WILL BE A PART OF THE FINAL DETERMINATION OF SAP AND/OR THE FINAL PRICE/ADDITIONAL PURCHASE PRICE FIXED UNDER CLAUSE 5A WOULD CERTAINLY BE AND/OR SAID TO BE AN APPROPRIATION OF PROFIT. HOWEVER, AT THE SAME TIME, THE ENTIRE/WHOLE AMOUNT OF DIFFERENCE BETWEEN TH E SMP AND THE SAP PER SE CANNOT BE SAID TO BE AN APPROPRIATION OF PROFIT. AS OBSERVED HEREINABOVE, ONLY THAT PART/COMPONENT OF PROFIT, WHILE DETERMINING THE FINAL PRICE WORKED OUT/SAP/ADDITIONAL PURCHASE PRICE WOULD BE AND/OR CAN BE SAID TO BE AN APPROPRI ATION OF PROFIT AND FOR THAT AN EXERCISE IS TO BE DONE BY THE ASSESSING OFFICER BY CALLING UPON THE ASSESSEE TO PRODUCE THE STATEMENT OF ACCOUNTS, BALANCE SHEET AND THE MATERIAL SUPPLIED TO THE STATE GOVERNMENT FOR THE PURPOSE OF DECIDING/FIXING THE FINAL PRICE/ADDITIONAL PURCHASE PRICE/SAP UNDER CLAUSE 5A OF THE CONTROL ORDER, 1966. MERELY 4 ITA NO . 2553/PUN/2016, A.Y. 2009 - 10 BECAUSE THE HIGHER PRICE IS PAID TO BOTH, MEMBERS AND NON - MEMBERS, QUA THE MEMBERS, STILL THE QUESTION WOULD REMAIN WITH RESPECT TO THE DISTRIBUTION OF PROFIT/SHARING OF THE PROFIT. SO FAR AS THE NON - MEMBERS ARE CONCERNED, THE SAME CAN BE DEALT WITH AND/OR CONSIDERED APPLYING SECTION 40A (2) OF THE ACT, I.E., THE ASSESSING OFFICER ON THE MATERIAL ON RECORD HAS TO DETERMINE WHETHER THE AMOUNT PAID IS EXCESSIVE OR UNREAS ONABLE OR NOT........ 9.5 THEREFORE, THE ASSESSING OFFICER WILL HAVE TO TAKE INTO ACCOUNT THE MANNER IN WHICH THE BUSINESS WORKS, THE MODALITIES AND MANNER IN WHICH SAP/ADDITIONAL PURCHASE PRICE/FINAL PRICE ARE DECIDED AND TO DETERMINE WHAT AMOUNT WOULD F ORM PART OF THE PROFIT AND AFTER UNDERTAKING SUCH AN EXERCISE WHATEVER IS THE PROFIT COMPONENT IS TO BE CONSIDERED AS SHARING OF PROFIT/DISTRIBUTION OF PROFIT AND THE REST OF THE AMOUNT IS TO BE CONSIDERED AS DEDUCTIBLE AS EXPENDITURE. 6. BOTH THE SID ES ARE UNANIMOUSLY AGREEABLE THAT THE EXTANT ISSUE OF DEDUCTION FOR PAYMENT OF EXCESSIVE PRICE FOR PURCHASE OF SUGARCANE, RAISED IN MOST OF THE APPEALS UNDER CONSIDERATION, IS SQUARELY COVERED BY THE AFORESAID JUDGMENT OF THE HONBLE SUPREME COURT. RESPEC TFULLY FOLLOWING THE PRECEDENT, WE SET - ASIDE THE IMPUGNED ORDERS ON THIS SCORE AND REMIT THE MATTER TO THE FILE OF THE RESPECTIVE A.OS. FOR DECIDING IT AFRESH AS PER LAW IN CONSONANCE WITH THE ARTICULATION OF LAW BY THE HONBLE SUPREME COURT IN THE AFORENO TED JUDGMENT. THE AO WOULD ALLOW DEDUCTION FOR THE PRICE PAID UNDER CLAUSE 3 OF THE SUGAR CANE (CONTROL) ORDER, 1966 AND THEN DETERMINE THE COMPONENT OF DISTRIBUTION OF PROFIT EMBEDDED IN THE PRICE PAID UNDER CLAUSE 5A, BY CONSIDERING THE STATEMENT OF AC COUNTS, BALANCE SHEET AND OTHER RELEVANT MATERIAL SUPPLIED TO THE STATE GOVERNMENT FOR THE PURPOSE OF DECIDING/FIXING THE FINAL PRICE/ADDITIONAL PURCHASE PRICE/SAP UNDER THIS CLAUSE. THE AMOUNT RELATABLE TO THE PROFIT COMPONENT OR SHARING OF PROFIT/DISTRIB UTION OF PROFIT PAID BY THE ASSESSEE, WHICH WOULD BE APPROPRIATION OF INCOME, WILL NOT BE ALLOWED AS DEDUCTION, WHILE THE REMAINING AMOUNT, BEING A CHARGE AGAINST THE INCOME, WILL BE CONSIDERED AS DEDUCTIBLE EXPENDITURE. AT THIS STAGE, IT IS MADE CLEAR TH AT THE DISTRIBUTION OF PROFITS CAN ONLY BE QUA THE PAYMENTS MADE TO THE MEMBERS. IN SO FAR AS THE NON - MEMBERS ARE CONCERNED, THE CASE WILL BE CONSIDERED AFRESH BY THE AO BY APPLYING THE PROVISIONS OF SECTION 40A(2) OF THE ACT, AS HAS BEEN HELD BY THE HON BLE SUPREME COURT SUPRA. NEEDLESS TO SAY, THE ASSESSEE WILL BE ALLOWED A REASONABLE OPPORTUNITY OF HEARING BY THE AO IN SUCH FRESH DETERMINATION OF THE ISSUE. 7. IT IS NOTED THAT IN SOME OF THE APPEALS, THE ASSESSEES HAVE RAISED AN ALTERNATE GROUND FO R ALLOWING DEDUCTION U/S.80P IN RESPECT OF THE ADDITION. 8. THE LD. ARS, IN SOME OF THE CASES, WHICH WERE REPRESENTED BY THEM, WERE FAIR ENOUGH NOT TO PRESS SUCH GROUND AS IT IS ONLY AN ALTERNATE GROUND AND HAVING BECOME INFRUCTUOUS IN VIEW OF THE RESTORATION OF THE MATTER TO THE AO. NO ARGUMENT WAS ADVANCED IN SUPPORT OF SUCH GROUND IN OTHER CASES, EVEN WHERE THE LD. ARS PARTICIPATED IN PROCEEDINGS BEFORE THE TRIBUNAL. THEREFORE, THE SAID ALTERNATE GROUND IN ALL SUCH CASES IS DISMISSED. 5 ITA NO . 2553/PUN/2016, A.Y. 2009 - 10 6 . THUS, IN VIEW OF THE STATEMENT MADE BY BOTH THE SIDES THAT THE FACTS IN THE PRESENT APPEAL IS IDENTICAL , THE ISSUE RELATING TO EXCESS SUGAR CANE PRICE PAID BY THE ASSESSEE IS RESTORED TO THE FILE OF ASSESSING OFFICER WITH SIMILAR DIRECTIONS AS ABOVE IN THE CASE OF MAJALGAON SAHAKARI SAKHAR KARKHANA LTD. VS. ACIT (SUPRA) . THE ASSESSING OFFICER SHALL DECIDE THE ISSUE AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, IN ACCORDANCE WITH LAW. (II) S ALE OF SUGAR AT CONCESSIONAL RATES TO THE MEMBERS/SHAREHOLDERS 7. WE FIND THAT THE ISSUE OF SALE OF SUGAR AT CONCESSIONAL RATES HAS ALSO BEEN CONSIDERED BY THE CO - ORDINATE BENCH IN THE CASE OF MAJALGAON SAHAKARI SAKHAR KARKHANA LTD. VS. ACIT (SUPRA) AND HAS HELD AS UNDER : 11. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE AO MADE ADDITION OF THE DIFFERENCE BETWEEN THE MARKET PRICE AND THE CONCESSIONAL PRICE AT WHICH SUGAR (FINAL PRODUCT) WAS GIVEN TO FARMERS AND CANE GROWERS. IN THIS R EGARD, IT IS OBSERVED THAT THIS ISSUE HAS BEEN CONSIDERED BY THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. KRISHNA SAHAKARI SAKHAR KARKHANA LIMITED (2012) 27 TAXMANN.COM 162 (SC). VIDE JUDGMENT DATED 25 - 09 - 2012, THE HONBLE SUPREME COURT NOTICED THAT T HE DIFFERENCE BETWEEN THE AVERAGE PRICE OF SUGAR SOLD IN THE MARKET AND THE PRICE OF SUGAR SOLD BY THE ASSESSEE TO ITS MEMBERS AT CONCESSIONAL RATE WAS TAXED BY THE DEPARTMENT UNDER THE HEAD APPROPRIATION OF PROFIT. THE HONBLE SUMMIT COURT REMITTED THE MATTER TO THE CIT(A) FOR CONSIDERING, INTER ALIA,: WHETHER THE ABOVEMENTIONED PRACTICE OF SELLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM IN THE CO - OPERATIVE SUGAR INDUSTRY?; AND WHETHER ANY RESOLUTION HAS BEEN PASSED BY THE STATE GO VERNMENT 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 TO FARMERS/CANE GROWERS/MEMBERS EACH YEAR ON MONTH - TO - MONTH BASIS, APART FROM OTHERS FROM DIWALI? THE ISSUE UNDER CONSIDERATION CAN BE DECIDED BY AN APPROPRIATE LOWER AUTHORITY ONLY ON THE TOUCHSTONE OF THE RELEVANT FACTORS NOTED IN THE ABOVE JUDGMENT. IN OUR CONSIDERED OPINION, IT WOULD BE JUST AND FAIR IF THE IMPUGNED ORDERS ON THIS SCORE ARE SET ASIDE A ND THE MATTER IS RESTORED TO THE FILE OF AOS, INSTEAD OF TO THE CITS(A), FOR FRESH CONSIDERATION AS TO WHETHER THE DIFFERENCE BETWEEN THE AVERAGE PRICE OF SUGAR SOLD IN THE MARKET AND THAT SOLD TO MEMBERS AT CONCESSIONAL RATE IS APPROPRIATION OF PROFIT OR NOT, IN THE LIGHT OF THE DIRECTIONS GIVEN BY THE HONBLE SUPREME COURT IN THE CASE OF KRISHNA SAHAKARI SAKHAR KARKHANA LIMITED (SUPRA). RESTORATION TO THE AO IS NECESSITATED BECAUSE, FOLLOWING THE JUDGMENT OF THE HONBLE APEX COURT IN THE CASE OF TASGAON TALUKA S.S.K. 6 ITA NO . 2553/PUN/2016, A.Y. 2009 - 10 LTD. (SUPRA), WE HAVE REMITTED THE ISSUE OF PAYMENT OF EXCESSIVE PRICE TO THE FILE OF AO, AND AS SUCH, THE INSTANT ISSUE CANNOT BE SENT TO LD. CIT(A) AS IT WOULD AMOUNT TO SIMULTANEOUSLY SENDING ONE PART OF THE SAME ASSESSMENT ORDER TO THE AO AND OTHER TO THE CIT(A), WHICH IS NOT APPROPRIATE. WE ORDER ACCORDINGLY. 8. BOTH THE SIDES HAVE STATED AT THE BAR THAT THE ISSUE RAISED IN PRESENT APPEAL IS IDENTICAL TO THE ONE ALREADY DECIDED BY THE CO - ORDINATE BENCH. THUS, IN VIEW OF THE ABOVE ORDE R BY CO - ORDINATE BENCH THIS ISSUE IS RESTORED BACK TO THE FILE OF ASSESSING OFFICER FOR DE - NOVO ADJUDICATION IN SIMILAR TERMS . THE ASSESSING OFFICER SHALL GRANT REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, IN ACCORDANCE WITH LAW. (III) HARVESTING AND TRANSPORT ATION EXPENDITURE 9 . IN SOME OF THE APPEALS THE ISSUE OF DISALLOWANCE OF CANE HARVESTING AND TRANSPORTATION EXPENDITURE INCURRED BY THE ASSESSEE HAS BEEN RAISED. THE EXPENDITURE HAS BEEN DISALLOWED BY THE ASSESSING OFFICER. WE F IND THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY CBDT CIRCULAR NO. 6/2007, DATED 11 - 10 - 2007. FOR THE SAKE OF READY REFERENCE THE SAME IS REPRODUCED HERE - IN - BELOW : 1. INSTANCES HAVE COME TO THE NOTICE OF THE BOARD WHEREIN ASSESSING OF FICERS HAVE DISALLOWED THE CLAIM OF HARVESTING AND TRANSPORTATION EXPENSES INCURRED BY THE CO - OPERATIVE SUGAR MILLS FOR PROCURING SUGARCANE FROM FARMERS, WHO ARE MEMBERS OF SUCH CO - OPERATIVE SUGAR MILLS AND WHO ARE BOUND UNDER AN AGREEMENT TO SUPPLY THE SU GARCANE EXCLUSIVELY TO THE CONCERNED SUGAR MILL. 2. THE ISSUE OF ALLOWABILITY OF SUCH EXPENSES IN THE CASE OF CO - OPERATIVE SUGAR MILLS HAS BEEN EXAMINED BY THE BOARD. THESE EXPENSES ARE INCURRED BY THE SUGAR MILLS FOR ENSURING AN ADEQUATE AND SUSTAINED SUPPLY OF FRESHLY CUT SUGARCANE THAT IS AN ESSENTIAL IN PUT FOR THE CONTINUOUS RUNNING OF SUCH MILLS. THESE EXPENSES ARE, THEREFORE; INCURRED FOR A COMMERCIAL EXPEDIENCY AND ARE PRIMA FACIE WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. 7 ITA NO . 2553/PUN/2016, A.Y. 2009 - 10 SUCH EXPENSES ARE, THEREFORE, ALLOWABLE IN THE COMPUTATION OF THE INCO ME OF THE CO - OPERATIVE SUGAR MILLS. 10. THUS, IN VIEW OF CBDT CIRCULAR THE HARVESTING AND TRANSPORT ATION EXPENDITURE ARE ALLOWABLE. CONSEQUENTLY, THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE. 1 1 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE . ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD SEPTEMBER, 2020 . SD/ - SD/ - ( P.M. JAGTAP ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 03 RD SEPTEMBER, 2020. RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) - 2, PUNE 4. THE PR. CIT - 1, PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE